Omer FarooqMon, April 4, 2022, 10:32 AM
In this article, we will discuss the 13 most ambitious metaverse companies in the world. You can skip our detailed discussion regarding the metaverse industry, its dynamics, and its future outlook, and go directly to the 5 Most Ambitious Metaverse Companies in the World.
Imagine being able to jump from one concert to another in a matter of seconds, or go from your native land to any country in the world without having to catch an exhausting flight, or attend all your meetings from your home but in your office. These are only a few use-cases to name that the metaverse promises.
What Is The Metaverse?
The metaverse is a shared online space, combining physical, augmented, and virtual reality, and it is set to reshape the world by becoming an integral part of our day-to-day lives in the next 10 to 15 years. The metaverse sits at the crossroads of Web3.0, blockchain, and virtual and augmented reality. Once people around the world get familiarized with these concepts, the metaverse industry will grow at an exponential rate. As of now, the world is functioning on Web2.0, where the only thing an individual can own wholly is a domain name. As we move into the realm of Web3.0, individuals can own a multitude of things in the form of digital assets. Anything an individual can create, buy, or sell on Web3.0 can be solely owned by that individual with digital rights of ownership. Blockchain technology and NFTs make this possible. Blockchain technology, cryptocurrency, and NFTs serve as the foundation of the metaverse, a decentralized virtual world where there is no one group of people will have majority ownership of the internet.- ADVERTISEMENT -https://s.yimg.com/rq/darla/4-10-1/html/r-sf-flx.html
Metaverse Market Analysis
Use cases for the building blocks of the metaverse — NFTs, cryptocurrencies, VR and AR — were once only limited to the gaming and entertainment industries. As these technologies mature, the metaverse will transform more than just the gaming and entertainment industries.
According to a report by Brandessence Market Research, the global metaverse market was valued at $209.77 billion in 2021 and is expected to grow to $716.5 billion by 2027 at a compound annual growth rate of 22.7%. A report published by Global Industry Analysts, Inc. pointed out that current efforts in building the metaverse are structured in a way to promote the peaceful coexistence of stakeholders, irrespective of their size.
This will serve as the key to the metaverse being decentralized and would speed up the development of Web3.0. The metaverse is aimed at bringing a wide range of industrial sectors including entertainment, finance, travel, and gaming industries into an immersive digital ecosystem where cryptocurrencies and NFTs are invaluable assets.
Key Trends and Major Players In The Industry
There is a fair amount of abstraction as to how businesses across the world will be operating on the metaverse, however, some corporate sectors have already started working on innovative solutions to become a part of the virtual revolution. Meta Platforms, Inc. (NASDAQ:FB) developed and published Horizon Worlds, a virtual world where users can explore, play, and create new worlds. Alphabet Inc. (NASDAQ:GOOG) is actively funding the development of Web3.0 and the metaverse. Microsoft Corporation (NASDAQ:MSFT) announced Azure Digital Twins which will allow users to create a digital representation of real-world entities and run simulations on them, allowing businesses to gauge feasibility in cost-effective ways.
Notable Projects
Giant tech companies such as Meta Platforms, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG) are pouring in billion-dollar investments to catapult the metaverse industry into a trillion-dollar industry. However, there have been some notable efforts and contributions to the building of the metaverse in the past, before it became a buzzword.
Linden Lab is widely known for creating Second Life, an online multiplayer game. Second Life was launched in 2003 and offered users the ability to create an avatar for themselves and lead a “second life” in an online virtual world. The platform allowed users to interact with places, objects, and other avatars. Users of the platform are called “residents”. Residents can explore the world, meet other “residents”, socialize, participate in both individual and group activities, build, create, shop, and trade virtual property and services with one another. Second Life has its own digital currency, the Linden Dollar, which users can buy with real money. The game rose to popularity over the decade and gained over one million users in 2013. As of 2021, the platform has more than 900,000 active users.
Another prominent and ambitious company in the virtual space is video-game maker Pixowl, which designed and developed the popular non-linear mobile game, The Sandbox. The players of the game explore resources such as water, soil, and sand, among others, and work on building their own virtual worlds. Players make progress through the game by performing tasks such as using water and dirt to make mud or making a battery from scratch. The Sandbox was acquired by Chinese video game company Animoca Brands, in August 2018, which worked on adding blockchain functionality to the game. The blockchain version of The Sandbox enabled users to monetize their intellectual property in the game. In the third quarter of 2019, Animoca raised over $2.5 million to fund the development of the blockchain version of The Sandbox. The platform has its own digital currency, SAND, which is used to transact over the network.
Other prominent companies that are leading the innovation in building the metaverse are Roblox Corporation (NYSE:RBLX), Nvidia Corporation (NASDAQ:NVDA), and Unity Software Inc. (NYSE:U).
Our Methodology
To find the 13 most ambitious metaverse companies in the world, we looked at various metaverse market reports that highlighted the major players in the industry. We look at the vision statements of each company to determine what it aspires to bring to the metaverse. We examined each company’s product portfolios, earnings reports, analyst comments, and hedge fund sentiment. We also looked at each company’s metaverse projects and gave weight to the competitive advantage that the company has over others.
Photo by mahdis mousavi on Unsplash
Most Ambitious Metaverse Companies in the World
13. Matterport, Inc. (NASDAQ:MTTR)
Market Capitalization: $2.33 Billion.
Matterport, Inc. (NASDAQ:MTTR) is a spatial data company that focuses on the digitization of the physical world. It offers Matterport digital twins, a 3D data platform to design, build, operate, promote, and understand spaces. The company offers solutions for real estate, photography, travel and hospitality, retail, insurance and restoration, industrial and facilities management, architecture, and engineering and construction industries. Matterport, Inc. (NASDAQ:MTTR) has a promising use case in the metaverse as it is using its ground-breaking spatial data technology to build digital twins of physical infrastructures.
In June 2021, Matterport, Inc. (NASDAQ:MTTR) announced a strategic collaboration with Meta Platforms, Inc. (NASDAQ:FB), then Facebook, Inc. (NASDAQ:FB), to build the largest-ever dataset of 3D indoor spaces, The Habitat-Matterport 3D Research Dataset. This dataset consists of 1,000 high-resolution Matterport digital twins made up of residential, commercial, and civic spaces generated taken from real-world environments. The goal of this collaboration was to develop Meta Platforms, Inc.’s (NASDAQ:FB) AI simulation platform, Habitat, and to make robots and virtual AI assistants better understand how to navigate the physical world.
Tiger Global Management LLC is the leading shareholder in Matterport, Inc. (NASDAQ:MTTR) as of March 7, 2022. The fund’s stakes in the company were valued at $154.8 million, which covers 0.33% of Tiger Global Management LLC’s investment portfolio.
12. Animoca Brands
Market Capitalization: N/A
Animoca Brands is a Hong Kong-based game software company and venture capital company founded 2014 by Yat Siu. The company is a pioneer in digital entertainment, blockchain, and decentralized gaming. The company operates its various business segments such as The Sandbox, Blowfish Studios, Quidd, GAMEE, nWay, Pixowl, Bondly, Lympo, and Grease Monkey Games.
Animoca Brands boasts an impressive portfolio of more than 150 investments in NFT-related companies and decentralized projects that are contributing to building the open metaverse, including Axie Infinity, OpenSea, Dapper Labs (NBA Top Shot), Yield Guild Games, Harmony, Alien Worlds, and Star Atlas among others.
Animoca Brands is most famous for The Sandbox, which is a popular multimedia platform today. HSBC Holdings plc (NYSE:HSBC) bought its first digital asset in the metaverse, this March. The Hong-Kong based bank is making inroads in the metaverse and purchased a virtual plot in The Sandbox, at an unannounced price. As of March 2022, The Sandbox reports having over two million registered users.
11. Roblox Corporation (NYSE:RBLX)
Market Capitalization: $27.05 Billion
Roblox Corporation (NYSE:RBLX) is a key player in the metaverse space. The company operates an online entertainment platform, which allows users to make friends, share experiences, bond over similar interests, and go on digital adventures together. The company also offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D worlds. The company also offers Roblox Client which enables users to explore 3D digital worlds created by other users. In addition to gaming, Roblox Corporation also offers Roblox Education which allows users to learn in a virtual space and maximizes user interaction with the interface.
As of March 25, 2022, Renaissance Technologies is the top shareholder in Roblox Corporation (NYSE:RBLX), having stakes worth $557.01 million. The investment covers 0.69% of the fund’s Q4 2021 investment portfolio.
Here’s what Jefferies Group had to say about Roblox Corporation (NYSE:RBLX) in its third-quarter 2021 investor letter:
“If we look at the Metaverse concept with more lenient guidelines for interoperability, then it becomes easier to see why certain companies are being referred to as Metaverse. On the virtual side, we’d point to companies like Epic Games, TakeTwo and Roblox. In augmented reality, it would be Niantic and SNAP. These are the large capitalized players in the space but albeit, not the only ones. We expect new mulit-billion dollar companies will rise as the
Metaverse becomes more mature.Roblox is a good example. The content is almost entirely user generated, the engine that powers the developer studio is provided by Roblox and developers/creators share in almost all the money that users spend on the platform. In addition, many of the items that you purchase in the avatar marketplace, or even a branded experience like Vans World, can be taken across experiences. Roblox talks a lot about platform extension, which would move the platform beyond just gaming/leisure experiences and into education and workplace offerings. The developer community has the capability to build tools for other developers, there are professional studios being built on the platform and many consumer-facing brands/content are partnering with Roblox to ensure a virtual presence. Roblox actually has a lot of the pieces for our utopian definition of Metaverse, but things like technology, interoperability with outside platforms and a dynamic, two-way economy are what’s missing. However, given our thesis that full interoperability is somewhat unrealistic, it’s easy to see how Roblox fits the definition…” (Click here to see the full text)
0. Unity Software Inc. (NYSE:U)
Market Capitalization: $27.64 Billion
Unity Software Inc. (NYSE:U) creates and operates an interactive real-time 3D content platform. This March, the company announced that it will be collaborating with Insomniac Events. Insomniac has over 30 years of experience in organizing music festivals and events, and now it has paired up with Unity Software Inc. (NYSE:U) to build a brand new metaverse world where Insomniac’s fans will be able to gather and engage virtually for live music performances regardless of location. Unity Software Inc. (NYSE:U) has the potential for becoming a go-to platform for metaverse applications.
As of March 23, 2022, Silver Lake Partners is the most prominent shareholder in Unity Software Inc. (NYSE:U), having stakes worth more than $5.0 billion in the company.
Unity Software Inc. (NYSE:U) is making unparalleled efforts to further the development of the metaverse and is one of the most ambitious metaverse companies in the world. Other companies exhibiting strong ambition in the space include Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Nvidia Corporation (NASDAQ:NVDA).
9. Autodesk, Inc. (NASDAQ:ADSK)
Market Capitalization: $46.30 Billion
Autodesk, Inc. (NASDAQ:ADSK) provides 3D design, engineering, and entertainment software and services worldwide. Among the company’s metaverse products we have various virtual, augmented, and extended reality platforms such as Civil 3D, Fusion 360, Maya, and 3Ds Max, among others. These products allow industry professionals to build digital twins of real-world entities and run simulations on them to gauge consumer interest and optimize business operations. Autodesk, Inc.’s (NASDAQ:ADSK) unique suite of 3D design software presents promising utility in the metaverse space.
As of March 25, 2022, Impax Asset Management is the dominating shareholder in Autodesk, Inc. (NASDAQ:ADSK), having stakes of more than $321.59 million in the company.
Polen Capital mentioned Autodesk, Inc. (NASDAQ:ADSK) in its third-quarter 2021 investor letter, in which the firm said:
“Shares of Autodesk have lagged recently due to expectations of short-term headwinds to free cash flow as the company transitions its billing structure to annual payments from multi-year up-front subscription payments. We view this as a transient issue and believe Autodesk’s attractive long-term growth profile remains in place.”
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Market Capitalization: $165.66 Billion
QUALCOMM Incorporated (NASDAQ:QCOM) is a leading semiconductors manufacturer that engages in the development and commercialization of foundational technologies for the wireless industry worldwide. This March, QUALCOMM Incorporated (NASDAQ:QCOM) launched a $100 million metaverse fund through which the company will target strategic investments in mixed reality companies and developers. The company aims to be the powerhouse for metaverse hardware which includes VR headsets, AR glasses, and holographic projectors, all essentially powered by QUALCOMM Incorporated’s (NASDAQ:QCOM) revolutionary Snapdragon chipsets.
Alkeon Capital Management is the leading shareholder in QUALCOMM Incorporated (NASDAQ:QCOM) as of April 4, 2022. The fund’s stakes in QUALCOMM Incorporated (NASDAQ:QCOM) were valued at $970.12 million, an investment that covers 1.79% of Alkeon Capital’s Q4 2021 investment portfolio.
Like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Nvidia Corporation (NASDAQ:NVDA), QUALCOMM Incorporated’s (NASDAQ:QCOM) is dedicated to building the metaverse and is pouring in millions of dollars to bring the digital world to life.
7. Tencent Holdings Limited (OTC:TCEHY)
Market Capitalization: $460.86 Billion
Tencent Holdings Limited (OTC:TCEHY) is a Chinese gaming giant, most widely known for its subsidiary Epic Games. Epic Games developed Fortnite, the game that revolutionized the gaming industry. Fortnite has given a teaser about how things will be in the metaverse. The platform enables users to create their own avatars that they can use to explore multiple virtual worlds. The game has featured several celebrities including Travis Scott and Ariana Grande that have performed at virtual concerts in the Fortnite universe.
6. Meta Platforms, Inc. (NASDAQ:FB)
Market Capitalization: $612.03 Billion
Meta Platforms, Inc. (NASDAQ:FB) is the company that birthed the buzzword we all know today as “metaverse” when Facebook, Inc. (NASDAQ:FB) rebranded itself as Meta Platforms, Inc. (NASDAQ:FB). The company’s CEO, Mark Zuckerberg, announced that Meta Platforms, Inc. (NASDAQ:FB) will transition from being a social media company to a metaverse company over the next decade. The company is dedicated to building the digital world and has been reported to have already spent $10 billion on the development of the metaverse. Among the company’s most notable metaverse projects we have Horizon Worlds, Horizon Workrooms, and the company’s cutting edge Oculus Quest 2 VR headset, the magic glasses that will make you a part of an immersive virtual experience.
As of April 4, 2022, Ken Fisher led Fisher Asset Management is the dominating stakeholder in Meta Platforms, Inc. (NASDAQ:FB), owning over 9.5 million shares of the stock which amounts to a stake value of $3.22 billion.
Here is what Davis Funds had to say about Meta Platforms, Inc. (NASDAQ:FB) in its fourth-quarter 2021 investor letter:
“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Meta (formerly Facebook), trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”
5 Most Ambitious Metaverse Companies in the World
5. Linden Lab
Market Capitalization: N/A
Linden Lab is an American technology company that is best known as the creator of Second Life, a multimedia platform that allows users to create their own world. Second Life is one of the largest and most successful virtual worlds to date. As of 2021, over 900,000 creators around the world are involved in the continuous development of the platform, making new content and experiences. Users of Second Life, also known as residents, earn profits from selling digital assets on the platform’s marketplace.
The company wholly owns Tilia, a licensed money transmitter and registered money services business. Tilia was developed for processing payments and providing financial services to the Second Life Community in compliance with U.S. laws and regulations through Tilia Pay. This January, Tilia announced a strategic collaboration with Unity Software Inc. (NYSE:U) to support virtual economies for game and metaverse developers.
On January 14, 2022, Philip Rosedale, the founder of Linden Lab, announced that he will be rejoining the company as a strategic advisor to guide Second Life’s journey into the metaverse. Philip Rosedale pioneered what has recently been hyped by Meta Platforms, Inc. (NASDAQ:FB). Mr. Rosedale incorporated metaverse concepts which include digital identity, virtual real estate, digital economies and online multiplayer ecosystems in 2003, when Second Life was released.
4. NVIDIA Corporation (NASDAQ:NVDA)
Market Capitalization: $693.96 Billion
NVIDIA Corporation (NASDAQ:NVDA) provides graphics and networking solutions in the United States, Taiwan, China, and internationally. The company designs graphics processing units for the gaming and professional markets, as well as systems on chip units for the mobile computing and automotive market.
NVIDIA Corporation (NASDAQ:NVDA) is one of the most ambitious metaverse companies in the world. The company’s flagship metaverse product is the NVIDIA Omniverse, a platform that enables businesses to bring together various digital assets and simulate production processes in a virtual environment in real-time. According to NVIDIA Corporation (NASDAQ:NVDA), their Omniverse is being used by experts at over 500 companies, including Amazon.com, Inc. (NASDAQ:AMZN), PepsiCo, Inc. (NASDAQ:PEP), and Lockheed Martin Corporation (NYSE:LMT) are using the platform to build physically accurate digital twins and develop realistic immersive experiences for customers. Since the launch of its open beta in December, Omniverse has been downloaded by over 150,000 individual creators.
On March 29, 2022, Tigress Financial analyst Ivan Feinseth raised his price target on NVIDIA Corporation (NASDAQ:NVDA) to $410 from $400 and reiterated a Buy rating on the shares.
As of March 24, 2022, Fisher Asset Management is the most prominent shareholder in NVIDIA Corporation (NASDAQ:NVDA) having stakes of more than $1.50 billion in the company. The investment covers 0.84% of Fisher Asset Management’s 13F portfolio.
Vulcan Value Partners, an investment management firm, published its fourth-quarter 2021 investor letter in which it mentioned NVIDIA Corporation (NASDAQ:NVDA). Here’s what experts at Vulcan Value Partners had to say:
“NVIDIA Corp. was a material contributor during the quarter. We have discussed NVIDIA at length in previous quarters. Its products are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and now, the Metaverse. The company continues to outperform expectations, growing its revenue and free cash flow significantly throughout 2021, and in turn, its value is compounding quickly.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization: $1.68 Trillion
Amazon.com, Inc. (NASDAQ:AMZN) has integrated metaverse technology into its marketplace. The company offers an AR shopping tool that allows users to visualize furniture in their rooms before making a purchase. On March 15, 2022, Amazon.com, Inc. (NASDAQ:AMZN) launched an online role-playing game, AWS Cloud Quest, which enables players to develop cloud-computing skills. Users solve cloud-computing puzzles and quests in order to earn points while walking through a virtual world. Amazon.com, Inc. (NASDAQ:AMZN) is a renowned as an e-commerce giant worldwide and is expected to dominate the e-commerce sector within the metaverse.
On March 29, 2022, Exane BNP Paribas analyst Stefan Slowinski initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with an Underperform rating and a $2,800 price target.
As of March 25, 2022, Ken Fisher led Fisher Asset Management is the most prominent stakeholder in Amazon.com, Inc. (NASDAQ:AMZN) having stakes of over $7.22 billion in the e-commerce giant. The investment accounts for 4.04% of the fund’s 13F portfolio.
Here’s what Davis Funds had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:
“Within the traditional growth category, growing euphoria has led to bubble prices for many companies, most especially those with new and unproven business models such as those discussed above. In contrast, our research focuses on a select handful of proven growth stalwarts whose shares still trade at reasonable valuations. For example, because of concerns about future litigation and regulation, several dominant internet businesses, including Amazon, trade at steep discounts to many unproven and unprofitable growth darlings that, in our view, trade at euphoric prices. While we expect a continued barrage of negative headlines around the company, as well as increased regulation in the years ahead, we do not expect a significant decline in its long-term profitability.”
2. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization: $1.87 Trillion
Alphabet Inc. (NASDAQ:GOOG) offers a range of AR and VR products already and is currently working on developing more products for the metaverse. The company’s most innovative extended reality project is Project Starline. This product uses the technological developments in machine learning, computer vision, spatial audio, and real-time compression to make virtual meetings feel like they are being held in person, without the use of a VR headset. Alphabet Inc. (NASDAQ:GOOG) is instead developing a 65-inch 3D video booth to make this possible.
As of March 29, 2022, Alphabet Inc. (NASDAQ:GOOG) has a market cap of $1.87 trillion and has gained 39.38% over the past twelve months.
On March 18, 2022, Tigress Financial analyst Ivan Feinseth raised his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,670 from $3,540 and reiterated a Strong Buy rating.
According to Insider Monkey’s database, TCI Fund Management is the dominating shareholder in Alphabet Inc. (NASDAQ:GOOG) as of the close of Q4 2021. The fund’s stakes in the company are a whopping $8.54 billion, which represents 19.22% of TCI Fund Management’s investment portfolio.
Vulcan Value Partners, an investment management firm, published its fourth-quarter 2021 investor letter in which it mentioned Alphabet Inc. (NASDAQ:GOOG). Here’s what the firm had to say:
“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet, performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet (Google) again with a margin of safety.”
1. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $2.28 Trillion
Microsoft Corporation (NASDAQ:MSFT) is going head-to-head with Meta Platforms, Inc. (NASDAQ:FB) to build the metaverse. The company is developing future versions of Azure, Windows, Office365, and LinkedIn that will be based on AR and VR technologies. The company is pioneering holographic collaboration and is building Microsoft Mesh, which is a collaboration and communications platform that is aimed at unifying holographic virtual collaboration across multiple devices including VR headsets and AR devices such as laptops and smartphones. Microsoft Corporation (NASDAQ:MSFT) launched Azure Digital Twins which allows users to model physical objects and business operations and run simulations on them. This can help businesses optimize operations and reduce operating costs.
This February, Tigress Financial analyst Ivan Feinseth raised his price target on Microsoft Corporation (NASDAQ:MSFT) to $411 from $366 and maintained a Buy rating on the shares in light of the company’s “strong” earnings for FQ2 2022.
Fisher Asset Management is the largest stakeholder in Microsoft Corporation (NASDAQ:MSFT) as of March 29, 2022. The fund’s stakes in the company were valued at $9.02 billion, which makes up for 5.05% of Fisher Asset Management’s investment portfolio.
Here’s what Vulcan Value Partners had to say about Microsoft Corporation (NASDAQ:MSFT) in its fourth-quarter 2021 investor letter:
“Microsoft Corp. was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”
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