Investment Guide for Metaverse-Related Stocks: Trend Analysis and Practical Strategies for 2024

Why are Metaverse stocks attracting attention now?

At the end of 2021, the Metaverse became a major trend, and after experiencing a period of excitement and cooling, interest in the market is rising again in 2024. From the moment Meta (formerly Facebook) announced its name change from Facebook, the Metaverse transformed from a mere science fiction concept into a real business opportunity.

Currently, major tech companies such as Google and Amazon have entered the market, and governments around the world are positioning it as a key area for industrial development. According to the technology maturity curve, the Metaverse is about to enter the stage of accelerated growth.

Understanding the Overall Picture of the Metaverse Industry: A 7-Layer Structure

Jon Radoff, the founder of the game development platform “Beamable”, classified the Metaverse into the following seven layers:

• Infrastructure Layer: 5G, WiFi 6, cloud computing, IC design, GPU processing
• Human Interface Layer: Smart Wearables, Sensor Technology
• Decentralized technology layer: Edge computing, AI, blockchain
• Spatial Computing Layer: VR/AR, Virtual Engine, Geospatial Mapping
• Creator Economy: Design Tools, Digital Assets
• Discovery Layer: Advertising networks, social media
• Experience Layer: Games, SNS, e-commerce

For investors, the most important point is that VR/AR companies are in the most direct position to monetize the Metaverse. This is why companies like Sony and Meta are continuously launching head-mounted displays.

At the same time, companies related to the Metaverse that utilize blockchain technology are emerging. This is because the value created by users in virtual spaces can have true ownership and transactions with the real world become possible.

Current Analysis of Promising Stocks (as of February 2024)

Taiwan stock market

US stock market

Explosive Growth Forecast of Market Size

According to Bloomberg's forecast, the Metaverse market size is expected to reach $800 billion to $2.5 trillion by 2024. Morgan Stanley predicts that the total time value related to the Metaverse will reach $8 trillion in 2024, and this figure alone indicates how enormous a market is being formed.

Investment Opportunities and Realistic Risks

Bullish outlook

✓ Metaverse-related technologies can be applied independently in other fields such as AI and 5G.

✓ A large-scale investment by major tech companies is rapidly building the industrial ecosystem.

✓ Entering during the early stages of growth presents an opportunity to maximize long-term returns.

Warning Signal

✗ The technology implementation is still in its early stages. There is a time gap of 5 to 20 years until large-scale commercialization.

✗ The regulatory framework is almost undeveloped. There are numerous unresolved issues such as cryptocurrency fraud, child protection, and privacy concerns.

✗ The market is currently in an expectation adjustment phase following the excessive expectations of 2021 and the sharp decline in 2022.

4 Practical Investment Strategies

1. Direct Purchase of Foreign Stocks

Open a US securities account and purchase US Metaverse stocks directly on the NYSE. This is a highly liquid and the most transparent method.

2. CFD Trading

By using a regulated CFD broker under ASIC (e.g., Mitrade), you can start with a minimum of $50. You can enhance your capital efficiency with leverage of 1:200. There are advantages such as zero fees and minimized spreads.

3. ETF Fund

Diversify your investments with ETFs packed with Metaverse-related stocks (Fubon Metaverse ETF 00903.TW, Roundhill Ball Metaverse ETF METV). This allows you to avoid concentration risks associated with individual stocks.

4. Direct investment in virtual assets

Consider investing in Metaverse-related cryptocurrencies only if you have sufficient knowledge and funds. It is essential to make decisions with an understanding of the balance between high returns and high risks.

Conclusion: Investment Strategy for 2024

The Metaverse is definitely a future that is coming, but the timetable is opaque. What is important is to have the mindset to invest in the long-term trends of industrial growth without being overly concerned about short-term price movements. The key to success will be to select stocks according to your risk tolerance from the three-layer structure of VR/AR hardware companies, chip manufacturing companies, and blockchain companies.