The metaverse, a longstanding concept, is gaining traction in the world of technology stocks. Consisting of interconnected platforms, it enables real-time communication and interaction. The key goal of the metaverse is to merge the virtual and real. For example, users can shop for products or attend concerts in the digital world.
The metaverse buzz has surged among public companies, with a surge in mentions during quarterly conference calls following Facebook’s rebranding into Meta Platforms (NASDAQ:META). CEO Zuckerberg sees the metaverse as the future of the internet, hence this radical change
Numerous firms are eager to align themselves with the metaverse narrative, reflecting the growing significance of this concept. Meta’s push into the metaverse has triggered a broader corporate interest, as companies recognize the transformative potential of this emerging space on their stocks.
Snap (SNAP)
Snap (NYSE:SNAP), the parent company of Snapchat, invests significantly in virtual-reality (VR) and augmented-reality (AR) software development. While this social media company may not dominate the metaverse hardware arena, it has adopted a unique approach.
Snap allocates significant resources to research and development, constituting its most substantial operating expense. A substantial share of this investment focuses on advancing its VR and AR software capabilities.
In the landscape of metaverse stocks, superior VR and AR content is pivotal. Given Snap’s financial commitment to content development, its technology stands a solid chance of widespread utilization within the metaverse.
Additionally, Snap recently hit a 15-month high, a level not seen since July 2022, likely fueled by Wall Street’s bullish sentiment from the rebounding ad market.
But the social media company had already experienced an impressive year even before the analyst upgrades. Snapchat+ had over 5 million subscribers at the end of the Q3 of 2023. The number of daily active users was 406 million in Q3, an increase of 43 million, or 12%, year-over-year.
Alphabet (GOOGL, GOOG)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Google’s parent company, primarily generates revenue through its advertising business. The majority of earnings come from Google Ads, encompassing search, display and video advertising. Moreover, Alphabet profits from cloud services and hardware products like Pixel and Nest. This diversification contributes to Alphabet’s financial strength and market influence.
Along these lines, Google has aimed for years to enter the mixed reality sector, exploring new products for user engagement and how to further diversify away from Search. Google Glass, its initial AR device, faced public disappointment, and subsequent VR products lost traction.
Despite setbacks, Google envisioned facial interaction as the next frontier in computing. In 2020, a new team formed, leading to “Project Iris,” AR spectacles challenging bulkier headsets. Acquiring startups North and Raxium, Google encountered technical challenges, discontinuing Iris.
The company also has “Project Moohan,” which is a headset developed in collaboration with Samsung. Google aims for an AR glasses platform by repurposing Iris’ software, competing with Apple (NASDAQ:AAPL) and Meta despite internal frustrations and leadership challenges.
Qualcomm (QCOM)
One of the three leading metaverse stocks, Qualcomm Technologies (NASDAQ:QCOM) made a significant push into the extended reality (XR) realm with its Snapdragon XR technologies. Comprising top-tier processors, software, perception technologies and developer tools, the chipmaker’s XR solutions open doors to robust possibilities for enterprise and consumers alike.
Boasting high-performance, low-power computing, and the integration of 5G and AI, XR holds strong potential surpassing the combined impact of PCs and smartphones. The aim of the Snapdragon XR platforms is to replicate intricate details perceivable by the human eye.
Most recently, Qualcomm unveiled the Snapdragon XR2+ Gen 2 Platform, a cutting-edge chip designed for VR and AR. According to media reports, Google and Samsung Electronics are set to integrate this advanced chip into their immersive technology.
These advancements will allow users and communities to engage in interactive, competitive, and creative experiences through lifelike avatars, captivating virtual worlds and contextual overlays that elevate the definition of reality. On the other hand, it will position Qualcomm as one of the best-positioned metaverse stocks in the chipmaking area.
On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.