META

3 Metaverse Stocks to Buy on the Dip: May 2024

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Don’t count Metaverse stocks to buy out just yet. Meta Platforms (NASDAQ:META) is shifting its focus on building out its artificial intelligence and metaverse technologies. Firms like HSBC are introducing a fund designed to seize opportunities in the metaverse for affluent clients in Hong Kong and Singapore.

This year, the global metaverse e-commerce market could grow 30% and reach a value of $30 billion this year. By 2025, the market could be worth $42 billion. By 2030, it could be worth more than $210 billion.

That being said, use weakness when choosing metaverse stocks to buy.

Roblox (RBLX)

A smartphone displaying a web page for Roblox Corp (RBLX).

Source: Koshiro K / Shutterstock.com

Roblox (NYSE:RBLX) gapped from about $40 to a low of $30 after cutting its annual bookings forecast. However, with the negativity now priced in, it’s starting to pivot higher. Last trading at $33.59, it’s also starting to pivot from over-extensions on RSI, MACD and Williams’ %R and could soon refill that bearish gap at around $40 again in the near term.

RBLX is one of the top metaverse stocks to buy and hold long term.

Moving forward, RBLX could easily push aggressively higher. For one, the company has about 16 million daily active users in the U.S. who spend about $150 annually. There are another 62 million outside of the U.S. who spend an average of about $24 a year. 

Also, the company is opening a new ad format as it looks for more ways to monetize its free games. That will include video ads running on virtual billboards and other screens from companies like e.l.f. Beauty (NYSE:ELF), Walmart and Warner Bros. (NASDAQ:WBD).

In addition, while we’ve seen multiple firms pile on with price downgrades, the pullback is overdone. The negativity has been priced in. And with the future potential growth of the metaverse, most notably metaverse e-commerce, RBLX is a steal at current prices.

Advanced Micro Devices (AMD)

In this photo illustration, the AMD logo is shown on a smartphone screen.

Source: Pamela Marciano / Shutterstock.com

Weakness in Advanced Micro Devices (NASDAQ:AMD) is a buy opportunity.

But don’t wait too long to buy. 

After dropping from about $230 to $141 in earnings, it’s just starting to pivot higher again. Last trading at $166.33, I’d like to see AMD retest $180 again shortly. Helping, Microsoft (NASDAQ:MSFT) just added AMD artificial intelligence chips to its cloud computing products. 

Two, analysts at Jefferies initiated coverage of AMD with a buy rating, with a price target of $190 a share. AMD even just replaced Nvidia on the Wolfe Research Alpha List. 

“Our views on NVDA and AMD haven’t changed, but the relative move in stock prices YTD causes us to make a tactical shift in priority, moving AMD to the Wolfe Alpha List, replacing NVDA, which is up ~90% YTD and ~100% since it was added to the list in November 2023,” added Wolfe.

We also must consider that companies racing forward with data centers for artificial intelligence, and even the metaverse, will need plenty of chips from companies like AMD.

Roundhill Ball Metaverse ETF (METV)

An image of a VR headset and headphones; the word metaverse on the headset. metaverse cryptos

Source: PopTika/Shutterstock

The last time I mentioned the Roundhill Ball Metaverse ETF (NYSEARCA:METV), it traded at around $12.41 on May 8. Still rebounding from its dip to $11.40, the METV ETF still offers a solid long-term opportunity on the metaverse.

With an expense ratio of 0.59%, the ETF holds 38 metaverse-related holdings, all of which should benefit from the metaverse’s potential $5 trillion impact by 2030. Some of its top holdings include Apple (NASDAQ:AAPL), Roblox, Meta Platforms, Nvidia (NASDAQ:NVDA), Unity Software (NYSE:U) and Microsoft to name a few of them. 

With some of the top tech heavyweights on board, I’d buy the METV ETF at current prices and check back on it in a few months. From its last traded price of $12.55, I’d like to see it closer to $20, with its holdings in NVDA, AAPL and RBLX expected to explode higher.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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