With the advancement of technology, such as 5G, augmented reality (AR) and Internet of Things (IoT), there is little doubt that we are moving towards a “Metaverse”.
Metaverse was first mentioned in science fiction novels in the early 1990s, used to describe when humans interact with each other in a virtual reality-based world.
With what we have seen in the past few years, it’s very plausible that Metaverse could actually be the future of this world.
In this article, I’ll take a look at three stocks that investors should consider buying if they believe that the future lies in the Metaverse.
The online gaming giant Tencent Holdings Ltd (SEHK: 700), with its dominance in online entertainment and social networks, can no doubt benefit from the shift to the Metaverse.
Investors might argue that despite Tencent’s success, it’s still very much a Chinese company, or a China-focused company.
This is true from the perspectives of its social networking business since most of its WeChat or QQ users are still in China or overseas Chinese users.
But it’s a truly global giant from the perspective of online gaming or more broadly, entertainment. That’s because its investments and interests in gaming companies are all over the world.
Online gaming and entertainment will be a significant component of the Metaverse.
And frankly, no other tech companies in the world can provide such an extensive lifestyle online ecosystem to its users, spanning from online entertainment, social networking, payment, and e-commerce.
Razer Inc (SEHK: 1337) is a Singapore-based online gaming hardware company.
While investors often talk about game development and content when it comes to online gaming, we shouldn’t neglect the importance of hardware and equipment to support gamers and users to have a fully immersive gaming experience.
Being a leader in gaming hardware, such as mice and headphones, companies like Razer are definitely needed in order to propel the shift to the Metaverse.
Recently, it has also diversified its business into other areas such as e-commerce and digital payments (with its digital gaming currency Razer Gold).
In my opinion, Razer remains an underdog gaming hardware company that’s sometimes neglected by investors while the market focuses excessively on the “software” side of online gaming.
3. Ping An Good Doctor
Ping An Healthcare and Technology Co Ltd (SEHK: 1833), also known as Ping An Good Doctor, can benefit from the shift of Metaverse because of its adoption of artificial intelligence (AI) technology in online medical consultations.
There are still things in our daily lives that perhaps can’t be replaced by machines or VR. Seeing a doctor is one of them.
Going to the hospital or clinic in the physical world has been a personal experience, especially when it comes to patients with critical illnesses.
The business model of Ping An Good Doctor is trying to disrupt or replace this personal experience with machine-enhanced experience gradually and, finally, replacing it entirely.
This sounded too “science fiction” last year. But Covid-19 has propelled people’s acceptance of such a business model.
And it has become inevitable that the shift will materialise sooner rather than later.
Thanks to Covid-19, the adoption and application of technology are only going to accelerate all over the world.
The Metaverse almost seems like a certainty now instead of a remote possibility. In my opinion, the three stocks above can benefit from the trend of our world moving to the Metaverse.