Due to the growing amount of interest around the notion of the Metaverse with Facebook changing its name to Meta Platforms (NASDAQ: FB), investors from a wide range of industries and sectors are becoming more interested in the virtual world.
Speaking with CNBC, DBS Bank senior investment strategist Daryl Ho noted that industry leaders that are already embracing the digitization trend and participating in the movement would reap the benefits of the Metaverse.
However, Ho pointed out that although Facebooks name change created stimulated interest around the area at DBS, they consider that the Metaverse idea is a culmination of trends seen over the last few decades, namely the digitization of almost every aspect of life, from talking, taking videos, sharing your photos, shopping, and work.
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Ho stated:
“If you don’t already realize it, we are already moving somewhat towards a digital world, so the Metaverse is simply the next step, the next frontier.”
Companies investors should look out for
In particular, the senior investment strategist identified the companies that stock trading investors should keep an eye out for in the future to shape the Metaverse.
“The computer gaming industry they are the ones that have the most experience designing large virtual worlds where multiple users are immersing themselves in almost on a daily basis, so I think these are the companies look out for, and these are the companies that would pave the way and shape the metaverse as we know it.”
Discussing the potential upside for investors in the medium to long term if they invest in early-stage digital firms that are connected to the metaverse, Ho opined:
“This digitalization trend towards the Metaverse is actually just a combination of irreversible trends that we’ve been seeing in technology over the last few decades. The migration of facets of life onto a digital platform. So those companies that are going to benefit are your big technology companies.”
Metaverse continues to grow
Indeed, the Metaverse continues to gain traction, Roblox (NYSE: RBLX) CEO Dave Baszucki recently stated that we’re “in the middle of the Metaverse right now.”
Meanwhile, blockchain developers intend to go beyond gaming into businesses like fashion, architecture, virtual concerts, and performances by deploying non-fungible tokens (NFTs) in their Metaverses.
While finally as cryptocurrency Metaverse tokens continue to climb in value, the Caribbean country Barbados plans to become the first nation to set up a diplomatic embassy in the Metaverse.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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