Benefits of investing in VR stocks
While talking about the benefits of investing in VR company stocks, it should be mentioned that the overall revenue of the Virtual sector is expected to reach 400 billion dollars by 2025. This means 59% of annualized growth.
The augmented and Virtual reality industries have started to be commercially viable. Many companies have headsets available at a meager price which makes them more reachable for a big audience. VR software has also developed outside the gaming industry. However, the VR world in terms of gaming is increasing significantly, and it is expected to grow by 21% annually until 2030.
On the other hand, according to the statistics, by 2030, grade AR headsets could turbocharge sales setting the trend for a 130 billion dollar market opportunity. This means that the VR world has vast potential in the future, so investing in the stocks of virtual reality companies could be a good idea.
On top of that, it is essential to note that VR technology can be implemented on a device like a smartphone or a headset and can help people navigate their lives with the power of a computer every step of the way. Virtual reality is being used in video games, online shopping, education, healthcare, and industrial applications. We are still at the tip of the iceberg in terms of where this tech will take us from 2020 to 2030 and in the distant future.
Besides, in terms of the expenditure in this industry, the forecasts are very promising. International spending on AR and VR is expected to increase from more than 12 billion dollars in 2020 to $72.8 billion in 2024. Also, global expenditure on AR and VR products and services is forecasted to experience growth of 54% for the 2020-2024 period.
Besides, the number of VR and AR devices purchased globally is forecasted to grow to about 69 million units by the end of 2023. On top of that, AR and VR headsets are also expected to have massive sales, which will be worth more than 30 million units each year by 2023. This fact shows that the international population becomes more used to digital advancements, and the future of VR stocks is highly likely to be very bright. Especially after the pandemic of 2020, when using VR technology became extremely popular and significant in the daily life of millions of people around the world.
Therefore, VR company stocks became attractive as they have never been before. An investor who wished to invest in this type of stock will gain many benefits in the future. This is why
it is essential to analyze the best VR stocks to buy in 2021. So We will talk about the most critical companies down below.
Top Virtual Reality Stocks To invest in
We will discuss the top 5 Virtual Reality companies worth investing in, including Snap, Autodesk, Unity, Facebook, and Nvidia. So let’s take a closer look at each of them.
Snap
Snap is an American Social Media company that was established in 2011. The company includes trendy products such as Snapchat, Spectacles, and Bitmoji. However, their principal product is Snapchat, a camera application that helps people communicate through short videos and images. The market capitalization of Snap equals about 86 billion dollars. The third generation of Snap Spectacles was released in November 2020 with a hefty price jump of 380 dollars. It’s roughly double the price of the previous version. The price increase is a more upscale design and the additional VR options.
The company plans to combine the new spectacles with Snapchat and its lens studio platform to deliver a compelling virtual reality experience. Based on their products and services, the snap is expected to increase significantly until 2030.
Snap is positioned to be one of the best virtual reality stocks in 2021 with real long-term growth potential. The three-year return of the company was almost 200%; besides, the earning estimates continue to move higher over each quarter of 2020. According to April 2021, their stock has 20 strong buy recommendations, which are helping drive prices higher as well.
Moreover, the price of the Snap stock is outperforming the major indices, and professional investors are expecting more upside in the future.
More importantly, the company has not been impacted negatively by the geopolitical pressure or the covid-19. The pandemic is driving digital reality advancement at a high rate due to the home environment world embracing it in 2020-2021. So this is probably the best possible background for the investors searching for the top VR stocks to buy. Without any doubt and hesitation, the Snap stock is indeed on the list of the best stocks in 2021.
Autodesk
Autodesk is an American software company that produces products and services in different industries such as architecture, engineering, manufacturing, media, education, entertainment, etc. Since 1982 Autodesk continues to develop the broadest portfolio of 3d software for global markets. Customers across the manufacturing, architecture, building construction, media, and entertainment industries, including the last 19 academy award winners for the best visual effects, use Autodesk software to design, visualize and simulate their ideas.
Autodesk VR company stocks have constantly been growing from 2015 to 2020, posting gains of 284% during that time. Autodesk is a critical company supplying the creative platform to make it happen as virtual reality becomes widely adopted. The return from 2015 to 2020 has been over 300%; the earning growth was over 130%. Technically, this stock remains near an all-time high, and the professional investors expect substantial upside as the virtual reality stocks continue to grow over the years. The overall crisis caused by the pandemic will not affect Autodesk stock negatively in 2021, which makes it even more attractive to invest in.
The overall market capitalization of the company equals over 63 billion dollars and a share price according to the April 2021 statistics is 288 USD. From 2020 to 2021, the revenue growth of Autodesk was almost 16% and is expected to grow by 18% by the end of 2023. All this information indicates that the company has enormous potential shortly, and investing in their VR company stocks will probably be the best trading decision one can ever make.
Unity
Unity is a 30 billion dollar leader in creating and operating interactive 3d content for game developers and business applications in automotive construction and film. The company is not just in that gaming space, but they are helping companies design applications in every sector. Unity reported 53% revenue growth by the end of 2020; besides, they have 2.5 million monthly active users. On top of that, their management is guiding to 754 million in 2020 revenue growth of 40% compared to 2019.
However, the company is not expected to be profitable for a couple of years even though its revenue increases year by year. The unity shares according to April 2021 equals 101 USD. On the other hand, the company’s market capitalization is more than 28 billion dollars. In terms of the long-term growth of Unity, investors should believe that the AR and VR market has enormous growth potential in the future, so the Unity stocks will start to value much more than they do now. Consequently, buying Unity stock and then giving it time to grow is probably the best possible option that any trader has. Besides, the company’s statistics are extremely promising, which offers many investors great hope that buying the best virtual reality stocks in 2021 will help them generate a lot of money shortly.
Facebook
While talking about the virtual reality stocks to watch, it is impossible not to mention the social networking giant Facebook. According to April 2021 statistics, the number of people who use this platform has reached its peak at almost 2.8 billion. These vast numbers already talk for themselves. Social VR is considered to be one of the undiscovered opportunities and specifically with the shares of Facebook.
The company is indeed the leader in the social networking industry; however, its 2014 acquisition of VR headset made Oculus put Facebook at the top of the VR industry. Oculus went from just 19% of the VR headset market in 2018 to 28% just one year later, and it is just behind the market leader of Sony corporation. In the first year Facebook started operating in the VR industry, the company sold over $100 million in VR content. Four years later, Facebook rolled out the new Oculus Quest 2, and over 1.1 million units were sold.
The company forecast shows that it can grow to 350 billion dollars annually by 2025. Besides, Facebook is expected to see revenue growth 25% higher in 2021 and earnings 12% higher to 11.33 USD per share. The company had 21% sales growth in 2020 and is estimated to have a higher rate shortly.
Even though Facebook has a very bright future in terms of the virtual reality market, it should be mentioned that the majority (98%) of the company revenues are still generated from its ads. However, the remaining part had revenue growth of 72% in 2020 and reached its peak with 1.8 billion. So while we have virtual reality stocks explained, it should be noted that Facebook is indeed a trustworthy company listed in the best VR stocks to buy in 2021.
Nvidia
Nvidia is an American technology company that is operating in the gaming industry. Nvidia has grown into so much more than just that maker of graphics cards that most investors see. Nvidia creates a kind of computing-intensive program used in AR and VR and artificial intelligence.
In AR and VR specifically, the company has a strong footprint in gaming which booked revenue up 67% on a year-over-year basis. The company’s Geforce gaming platform has over 6 million members. Besides, it was streamed for more than 200 hours worldwide. The company is also beta testing its Nvidia omniverse real-time 3d simulation platform for business applications. This platform will have a wide range of offerings, including video tutorials.
Nvidia is hitting as many long-term trends as possible, including gaming, VR, AI, AR, self-driving, and the cloud, but they are not cheap VR stocks to buy. The company reported sales growth of 52% over 2020, and it is expected to produce 33% earnings growth in 2021 to 13.36 cents per share. Gaming will probably benefit Nvidia the most; however, social VR is where the undiscovered opportunities might be. Therefore, if you are an investor interested in the virtual reality market, then picking the Nvidia stock would be the best possible alternative that will help you gain a substantial amount of money in the future.