Won’t You be My Digital Neighbor?

by | Apr 5, 2022 | Stocks to Watch

Big names are jumping into the metaverse.

All for a piece of a potential $8 trillion market.

Sure, it hasn’t even launched yet, but Goldman Sachs says the digital world could be worth $8 trillion.

On top of that, big brands are jumping at the opportunity.

Nike, Coca-Cola, Gucci, CVS, the list goes on… they all want a piece of the market.

Nike just filed for several new trademarks to design and sell virtual Nike sneakers and apparel in the metaverse. CVS Corp. filed for a trademark to sell virtual goods, NFTs, and could even provide healthcare services, including prescription drugs and personal care products.

Celebrities, like Snoop Dogg just released the first music video filmed in the metaverse. He also bought digital real estate there. In fact, someone even paid $450,000 to be his neighbor.

And, according to Fortune, “Parcels of metaverse real estate near other celebrities are selling at premium prices too. In January alone, sales of metaverse real estate topped $85 million, according to MetaMetric Solutions.”

Paris Hilton, Jake Paul, Shawn Mendes, Lady Gaga are all reportedly in there.

Even wilder, Gucci for example just sold a digital version of its Dionysus bag on Roblox for $4,115 in 2021. Jacob & Co. sold a luxury digital watch for about $100,000. Dolce & Gabbana made $5.7 million auctioning non-fungible tokens.

They’re all digital. They’re all products your avatar can wear.

According to Morgan Stanley, “Social gaming could expand luxury brands’ total addressable market by over 10% in the next eight years and increase earnings by 25% — which would amount to $50 billion in new, real-world cash for the likes of Gucci, D&G, and Prada to battle for by 2030.”

So, how can we profit from it all?

One way is to invest in the usual gang of metaverse stocks, like Microsoft, Unity Software, Roblox Corp., NVIDIA, and even Advanced Micro Devices.

But if you want greater exposure to the metaverse world, there are also ETFs.

Look at The Metaverse ETF (METV), for example.

With an expense ratio of 0.59%, some of its top holdings include NVIDIA Corp., Roblox Corp., Meta Platforms, Unity Software, Snap Inc., Sea Ltd., and Apple to name a few.

There’s also the ProShares Metaverse ETF (VERS).

With an expense ratio of 0.58%, some of its top holdings include Apple, NVIDIA, Meta Platforms, Amazon.com, and Microsoft. According to ProShares, the “Metaverse ETF gives investors access to the companies that are shaping the next frontier of digital interactions.”

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