The bank listed the top 5 company stocks that could give investors exposure to the metaverse, and considered Facebook the best option.
The Wall Street banking giant, Morgan stanley, recently shared his vision for the future for the metaverse market, a concept that refers to the virtual world and that has been gaining popularity in recent weeks.
The term metaverse, which refers to the confluence between virtual reality and the physical world through online spaces, has attracted general attention after the announcement of the rebrand of Facebook becoming the next great technological promise that will revolutionize the world, similar to how the Internet did at the time.
Facing this scenario, the investment bank has anticipated that the metaverse could become a potential market of USD $ 8 billion, opening a new business opportunity for investors.
The metaverse will be a “Next-generation gaming, streaming, and social media platform”Which will initially operate as an advertising and e-commerce forum. So indicated Morgan stanley in an investigation last week that was reviewed by various news outlets. Forbes collected a quote about it from analyst Brian Nowak, who wrote the report:
Like current digital platforms, we expect the metaverse to initially and primarily operate as an advertising and e-commerce platform for offline products / purchases.
Facebook is the most obvious investment, but there are others
In its report, the investment firm highlighted some of the actions investors can take advantage of to expose themselves to the potential gains from this growing trend. As expected, analysts from Morgan stanley they considered the actions of Meta (formerly Facebook) as the most obvious to gain exposure to the metaverse market.
Facebook (rated overweight) is the most obvious way to invest in the space, according to the report, thanks to the durability of its core business growth. And whatever success you have in building and monetizing the metaverse is “all bullish and will represent another multi-year monetization layer“Adds the report.
But the social media giant is not the only one that can make it easier for investors to capture the potential bullish performance of this market. Morgan stanley He also mentions four other actions in his report that could offer exposure to the metaverse.
The analysts highlighted the game company Roblox, highlighting as advantages its 47 million daily active users and its monetization algorithms “solid”With the advertising and e-commerce opportunities of the metaverse. Likewise, the report also mentioned the companies Alphabet, parent company of Google, the social media platform Snap and the video game search engine Unity Software as actions that can benefit from the growing adoption of the metaverse concept.
“US daily users already spend the total equivalent of ~ 11 billion days per year consuming digital media“, Which are considered”metaverse hours to captureThe report noted.
Metaverso could favor the luxury market
On the other hand, the report highlighted that the metaverse and tokens Non-fungibles (NFTs) could represent a growth advantage over the next 10 years for the luxury digital goods market.
The metaverse and NFTs could represent a $ 56 billion revenue opportunity for the luxury market, Held Morgan stanley, as quoted CoinDesk. By 2030, luxury brands could expand their total addressable market by more than 10% and industry earnings before interest and taxes (EBIT) by approximately 25%. NFT’s demand for collectibles will lead to strong demand for luxury items in the medium term, analysts said.
NFTs and social gaming present two short-term opportunities for luxury brands, allowing them to monetize their vast intellectual property built over decades.
Morgan stanley He noted that luxury goods companies are already exploring collaborations with gaming platforms and metaverse, with an increasing number of deals. In this regard, they also mentioned the company Kering, based in France, owner of luxury brands such as Gucci and Yves saint laurent, as the one in the best position to take advantage of the metaverse due to its “Brand demographics and their advantage in innovative digital collaborations”Added the analysts.
The bank also estimated that the total NFT market will grow close to USD $ 300 billion by 2030. The report also added that the metaverse has the potential to increase crypto payment volumes; although Morgan stanley considered that the income opportunity is smaller and occurs in the long term.
According to analysts, the “The challenge here is that the uncertain regulatory environment around cryptocurrencies in the long term creates more uncertainty about how big this monetization opportunity could be.“.
Hannah Estefanía Pérez’s version / DailyBitcoin
Image from Unsplash