With the excitement stemming from Facebook’s (NASDAQ:FB) Meta news, the buzzword of the month is “metaverse,” and that has traders hunting for speculative bets. While this isn’t a new technology development or a novel platform nobody has ever heard of, it has been brought into a more mainstream spotlight. So, what is the metaverse anyway?
Something to consider when looking for metaverse stocks is how companies are able to fold into a virtual world? Suppose you can interact with other, real people (via avatars), transact business like buying virtual products, and even go on excursions to win prizes within this virtual community. In that case, you’re likely interacting within a metaverse.
In a previous article, I gave a metaverse checklist for readers to consider. This included some of the topics above as well as emphasized the importance of a peer-to-peer ecosystem. Games like Fortnite, Minecraft, and Roblox are clear examples of metaverse platforms in real life. But games aren’t the only way companies find ways to get their foot into this new virtual ecosystem. If you look at the Roundhill Ball Metaverse ETF (NYSE:META), you’ll see that there are many companies that Round Ball considers contenders for a metaverse play.
Out of the top-10 stocks held in the ETF, only a handful are directly related to gaming. The rest are more omnichannel with a broader focus on infrastructure and metaverse ecosystem technology. In this article, we’re looking at some of the lower-priced end of the spectrum; penny stocks and three that’ve gained some momentum thanks to interest in the emerging metaverse industry.
Metaverse Penny Stocks To Watch
- Super League Gaming Inc. (NASDAQ:SLGG)
- DouYu International (NASDAQ:DOYU)
- Meta Materials Inc. (NASDAQ:MMAT)
1. Super League Gaming Inc. (NASDAQ:SLGG)
Shares of Super League Gaming have been climbing since the start of the month. The initial catalyst came as the company announced that it was teaming up with The Leukemia & Lymphoma Society. You might be wondering what an esports company is doing with such a group. The two are building a competition hosted by SuperLeague’s Minecraft community, Minehut.
Throughout the month, this is designed to bring Minecraft players together with LLC “Honored Heroes,” which are pediatric cancer survivors and patients. Matt Edelman, Super League Chief Commercial Officer, explained, “It is never too early to learn that your actions can make a difference in the lives of people who need an incomparable amount of support. Gamers who participate in this competition will be helping to revolutionize blood cancer cures and care.”
However, the recent focus on metaverse stocks has also placed a brighter spotlight on SLGG. Last week the company announced that it is building its global reach with users in Roblox and Minecraft to expand its recently acquired Bloxbiz advertising platform. Designed explicitly for metaverse environments, SuperLeague is focused on growing the Bloxbiz arm through brand engagement. According to comments from Ann Hand, CEO of SuperLeague, this initiative targets supporting metaverse creators and “introducing brands into the space in a way that delivery powerful marketing outcomes.”
2. DouYu International (NASDAQ:DOYU)
The idea of the metaverse is still new to mainstream investors. While gamers and digital nomads are very familiar with the technology, the emerging phases of this trend have opened doors for broad speculation. The fact is that there can be so many different contributions to a metaverse from multiple industries.
DouYu International specializes in live streaming of game-centric events. Its platform brings together live streamers and puts them in an immersive and interactive environment. Similar to SuperLeague, DouYu has also focused on advertising to include within its business model. Collecting valuable user and viewer data allows the company to present insights to advertisers and other Esports partners.
Though it isn’t directly engaged in a “metaverse,” DouYu has a foothold within the digital gaming industry. As this industry continues evolving, all points on the value chain could come into focus, and entertainment is one of these. What’s more, if you’ve got DOYU stock on your watch list right now, the company will also deliver its Q3 2021 results later this month.
3. Meta Materials Inc. (NASDAQ:MMAT)
Shares of Meta Materials have enjoyed a strong move since hitting lows of $2.80 in August. The last few months have seen MMAT stock benefit from excitement in the renewable energy arena as the company has exposure to things like solar power hardware. There was also speculative momentum building from an interest in EV stocks. Meta Materials has a multifaceted model that offers functional products and utilizes things like nanocomposites to service industries ranging from 5G communications and aerospace to automotive, medical, and energy.
Despite its previous industry catalysts, the metaverse is front and center right now. Initially, some traders speculated on MMAT being one of the metaverse stocks to watch based on its name. However, more details have emerged that place the company amid at least the hardware portion of this emerging space. For instance, Meta’s holoOPTIX platform is developed using optical components for holographic transmission. The company also offers ARfusion eyewear designed specifically for augmented reality use.
Further solidifying this as one of the metaverse stocks to watch is an industry conference presentation this week. Meta Materials will deliver two presentations on Wednesday. One is titled R2R Electro-Magnetic and Holographic Films for AR Applications, and the other is Integrating Application Specific Functional Films into AR Prescription Lenses. Panelists at the event include representatives from Stanford University, Facebook Reality Labs, Microsoft / Hololens, and META, among others.
Are Metaverse Stocks On Your List Right Now?
If you’re starting to research metaverse stocks, there are many things to look into right now. Everything from different technologies, including augmented reality and virtual reality to cloud servers, cyber security, and more, are on the table. With today’s list of penny stocks, these are just a few that have recently gained some attention in the stock market. Whether or not they should be on your radar is something I’ll leave up to you.