The Metaverse. Since Facebook changed its name to Meta Platform, some investors want to put some marble on it so as not to miss the bandwagon. But isn’t this a simple FOMO effect? And are there still enough stocks to guarantee a good return over the next decade?
The ice can break immediately: between large lids very liquid, nothing almost nothing a tech stock that is currently being sold at such a short price that it can guarantee future outperformance relative to the benchmark.
To invest in MetaverseThere are well-known companies that estimate the stock correctly on their rate of profit growth, but nothing out of the ordinary. You have been warned.
Note about the graphs below
The charts below are basic data charts. You know me, I don’t pay for technical analysis. Here is the explanation of the data in these graphs:
- The black line is the current stock price.
- The Blue Line is the average price/earnings ratio over the past 20 years.
- The dark green part is the growth rate per share.
- The light green part shows the declared dividends.
- The mixed P/E ratio a weighted average of the most recent actual earnings + the nearest quarterly earnings forecast.
Activision Blizzard (ATVI)
Activision Blizzard suffered the full weight of a recent correction in American tech to return to more acceptable levels of appreciation in recent weeks.
It now quotes the mixed P/E of 15 for a growth rate of 28%which is highly respected compared to its benchmark, the NASDAQ-100, which is still at the peak of 37.7 despite its recent fall.
Alphabet (GOOGL)
Alphabetalso called “Google”, not the most affordable of the companies presented (mixed P/E of 27) but may immediately be necessary to Metaverse.
Despite its slightly higher price, it is also not the most expensive, especially since it has one of the highest revenue growth rates in the industry, with 38%.
Amazon (AMZN)
Amazon may also play a major role in the environment Metaverse. We know very well the intrinsic qualities of the company, but the sad part is quite expensive (price / mixed revenue ratio of 83).
However I included it in this ranking because the growth rate is expected to 31% in the long term and to grow operating cash flow in the past few months already 28%.
The company also uses it to continue to invest mainly in the development of its activities. This is one of the reasons why Amazon’s net income isn’t always very high at first glance.
Read also : Tech US: The Values Of 13 Stocks: AMD, Amazon, Apple, Nvidia, PayPal, etc
Meta Platforms (FB)
The company’s Facebook headquarters recently changed its name Meta Platforms to make an impression of its future participation in the virtual world, the Metaverse.
This is of course the reference title to bet on in progress Metaverse. Meta Platforms stock may be very expensive to look at at first glance, but there is a mixed P/E of 22 for a large growth rate of 34%it’s not so much.
Tencent (TCEHY)
Tencent returned to proper valuation after the fall in Chinese technology stocks. This is how it posts a mixed P/E of 24that is, for such a high rate of income growth (34%) very fit.
If you accept the sword of Damocles that is now hanging over Chinese stocks, Tencent will be a key player in Metaverse in the Middle Kingdom but also internationally.
Should you invest in Metaverse?
At this high price level, no, not necessary. There are other less trendy or neglected sectors, such as woolwhich could possibly give you a better return in the next decade.
It is up to you to make the decisions that best fit your investor profile.
warning: The information contained in this analysis don’t buy advice. Therefore, the author cannot be responsible for any loss of the product (s) concerned. Any investment involves the risk of loss. For more information, see our legal notices.
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The founder of the blog, Nathanaël Dumortier is also a medium/long term equity investor. He relies on basic analysis to make his purchases.
