3 “Strong Buy” Stocks for the Metaverse Revolution

Say whatever you will about Mark Zuckerberg’s decision to change his company’s name to ‘Meta,’ but the truth is, the metaverse is coming and we can’t stop it. The expansion of the internet, and its increasing integration with virtual reality (VR), augmented reality (AR), and interactive social media and gaming, is gaining momentum. The question is not if it will be fully realized, but when.

But before we get there, we need the inevitable build-out, the physical infrastructure to support the online network. And that will open up scores of opportunities for investors.

Against this backdrop, we’ve used the TipRanks database to call up the latest info on three stocks that are likely to tie-in closely with the metaverse’s early growth. These names have received enough support from the analyst community to earn Strong Buy consensus ratings. Let’s take a closer look.

Matterport (MTTR)

One certainty of the metaverse is that it will depend on cameras – high-end digital video will be necessary to convert real-world views into online spaces. Matterport specializes in just that – the company offers a spatial computing platform for high-quality 3D space capture. The company’s software can worth a wide range of cameras, to build a digital side to any space. The connection with the metaverse, a proposed ‘virtual world’ is clear.

Translating the real world to the digital realm is big business, and Matterport has benefitted greatly from it. The company has over 6.2 million digital spaces under its management, based in some 170 countries. Per year, the company brings in approximately $111 million in top-line revenue.

A look at the 3Q21 numbers will give us an idea of just how fast Matterport has been growing. The quarterly revenue of $27.7 million was up 10% year-over-year, driven by a 36% year-over-year gain in subscription revenue, to $15.7 million. That subscription revenue, in turn, was driven by a 116% year-over-year gain in total subscribers, which reached 439,000. Annual recurring revenue, a key metric of future income, was reported at $62.7…

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