CNBC’s Jim Cramer said Wednesday he believes there are four standout stocks that investors should buy if they want to bet on the success of the so-called metaverse.
“Going forward, there will be many companies who try to claim they got a piece of the metaverse,” the “Mad Money” host said. However, for now, he said the best places to turn are Facebook-parent Meta, online gaming platform Roblox, semiconductor company Nvidia and Unity, a video-game software development firm.
The metaverse is an increasingly popular term on Wall Street that refers to immersive digital worlds in which people can connect using various devices. “Will younger people want a piece of this? I can’t be sure. I’m not one of them, but I know money managers love it and maybe that’s more important,” Cramer said.
While known in science-fiction circles for years, the metaverse has been in the spotlight in recent weeks after Facebook changed its company name to Meta. Executives at the firm, including CEO Mark Zuckerberg, have said the move was designed to reflect the company’s ambitions beyond social media. It is investing billions of dollars to develop this vision, expecting it to play out over the course of the next decade.
In addition to Meta, Cramer said Nvidia’s high-powered graphics chips will play an important role in the metaverse.
Roblox, on the other hand, has its “own internal metaverse already,” Cramer said, alluding to the fact Roblox users develop games that can then be played by other people on the platform.
Lastly, Cramer said Unity deserves a look as a metaverse play. The software company on Tuesday announced a stock-and-cash deal to buy the visual effects studio behind “Lord of the Rings” and “Avatar.”
“These are the companies that are currently doing the best work in the metaverse. In the end, I think it will succeed or fail based on its ability to create powerful experiences,” Cramer said.
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