Undervalued Metaverse Stock to Buy in May 2024

Some undervalued metaverse stocks should be on investors’ radars this month. These companies are at the forefront of developing cutting-edge technologies that will shape the future of virtual worlds.

The metaverse is an emerging concept. It’s unwise to believe that since we aren’t plugged into AR/VR all day, it hasn’t yet made an impact. Our social lives are virtual; we have completely virtual economies and digital currencies. It makes sense that the metaverse continues to impact, as opposed to comparing it to an extreme benchmark.

These undervalued metaverse stocks may have high valuations, but their revenue and earnings growth metrics support how high they are expected to fly.

Meta Platforms (META)

Despite a 15% drop in share value for Meta Platforms due to weaker second-quarter revenue guidance and increased AI spending, Meta remains a top performer among U.S. big tech companies. Its net income doubled, primarily driven by advertising revenue, while its Metaverse division continues to invest heavily despite running at a loss.

Still its recent share price nosedive discounts its prospects heavily. The reason is that META is still growing very quickly. Analysts predict that its top-line will continue to grow in the double digits over the next four years, and there are sizable EPS increases on the way, according to their forecasts. This is impressive, given that it hovers around the $160 billion mark at the time of writing.

Like most of the tech stocks in FAANG, META was also arguably trading at a premium to its intrinsic valuation, to begin with, given the historic tech rally we’ve seen over the past couple of years. This correction could then be seen as healthy for its valuation in the long run and create some enticing entry opportunities for investors.