Jim Cramer’s Metaverse Stocks

Jim Cramer is a fan of the metaverse and has identified a few stocks as important metaverse plays. The first of these is Nvidia, which is famous for its powerful graphics chips. The company’s revenue increased 50% year over year to $7.1 billion. Adjusted earnings per share came in at $1.17. The company’s CEO recently said that it was now possible to be an avatar of your favorite film or video game, such as Avatar.

Himax

Himax (HIMX) offers a good opportunity for investors to gain exposure to the metaverse for less than $11 per share. This company is closely tied to the rapidly growing virtual reality industry, and the price is reasonable considering its cyclical nature. The company is also well-positioned to profit from the growing market for metaverse hardware. However, investors should be aware that Himax’s share price has a tendency to fall once the metaverse trend slows.

Himax makes hardware for VR headsets, which are crucial for the experience of virtual reality or augmented reality. The company is set up for large-scale manufacturing, which could result in new sales opportunities. Further, its latest quarterly financial results suggest a company with tremendous growth potential. The company’s Q3 2021 revenues jumped 75 percent year-over-year to $421 million, fueled by increased sales of its display chips. These chips could also be used in metaverse applications, including augmented reality.

Himax has been one of Jim Cramer’s metaverse stocks for the last couple of years. According to CNBC Investing Club, the company’s technology makes it an attractive option for investors looking to capitalize on the booming metaverse. While the company is relatively new, it has already made a positive impact on its shareholders. Its CEO even said that it is possible to become an avatar in the movie Avatar.

Nvidia

If you’re a speculator looking to make a profit in the metaverse, it may be time to consider Nvidia (NVDA). The chipmaker is a technology powerhouse that is the backbone of data centers, self-driving cars, and gaming. While the company is currently facing some temporary headwinds, long-term secular tailwinds make it a promising buy. While the current share price is below its historical high, it’s undervalued and could be a great long-term investment opportunity.

NVIDIA is also expected to play a major role in the metaverse. Its Omniverse platform enables collaboration on a shared 3-D virtual environment. It enables teams to create and share projects and design tools. The company has invested billions in building its platform.

Another stock on Jim Cramer’s watchlist is Immersion. The stock has seen a 50% wipeout in value this year, but it has solid business fundamentals. Its IP-based sales strategy and relationships with big name brands make it a good pick. Its cash flow is also solid. Its new metaverse strategy should help it gain market share from tech giants. Microsoft is also building a metaverse-like platform and developing holographic technologies.

Tencent Games

Tencent is the world’s largest gaming firm by revenue. While China’s domestic regulatory crackdown has hurt its revenue forecast, the company is increasingly reliant on global markets to fuel growth. And that means it needs to build a portfolio of chart-topping games. Tencent’s new strategic direction is a testament to how China’s tech titans are emerging from the regulatory shadows. It is now focusing on acquiring global assets, especially those related to the metaverse.

Several tech companies are preparing to tap into this rapidly growing market. Some of the most promising include Roblox, Facebook parent Meta, Nvidia, and Tencent Games. Many believe the metaverse could be the next big thing in the internet. And these companies are on the leading edge of the trend.

In the meantime, investors can benefit from Jim Cramer’s views on the metaverse. The renowned investor believes that this emerging technology will transform work and eliminate waste. He has been promoting the concept of metaverse since Facebook’s rebranding, and early beneficiaries of the hype are making great gains.

Roblox

When it comes to judging Roblox stock, investors are looking for ABPDAU (average daily users). This metric determines how popular the game is, and is the key to understanding how much the company is worth. The higher this metric is, the more users it has. The higher this metric is, the more potential there is for more developers, content creators, and company brands to join.

Roblox, which recently announced its second-quarter financial results, said that revenue fell 25 cents a share, and loss per share increased to 25 cents. However, analysts had been expecting revenue of $684.8 million. The company’s CEO, David Baszucki, said that the company is still seeing growth in daily active users. And he believes the company’s continued focus on digital experiences will drive growth for at least 15 years.

While Roblox is primarily a gaming company, it has also been expanding into the metaverse space. Its name change from Facebook to Meta was a deliberate decision by the company, and the new name reflects their ambitions beyond social media. The company has been investing billions of dollars in building this new technology, and it has been reported that Nvidia will play a key role in developing it.