The metaverse space has been gaining massive attention from investors, and Morgan Stanley believes Facebook (now known as Meta) is the best stock to gain exposure to the rising sector.
The cryptocurrency space has experienced numerous trends over the past few years. From the rise of initial coin offerings (ICOs) to the recent emergence of the decentralised finance (DeFi) and nonfungible token (NFT) sectors.
The latest trend is metaverse, which has gained massive attention since social media giant Facebook changed its name to Meta. According to leading investment bank Morgan Stanley, Facebook is the best stock to gain exposure to the metaverse.
The report by lead equities analyst Brian Nowak pointed out that Meta is the most obvious way to invest in the space. The Morgan Stanley analyst stated that any success the company has in building and monetising the metaverse is an upside and will contribute further to Facebook’s growth over the coming years.
In addition to Facebook, the analyst added that he favors a few other companies to gain exposure to the metaverse space. These companies include; Roblox, Alphabet, Snap (overweight) and Unity Software. The report added that;
“American daily users already spend the total equivalent of $11bn days per year consuming digital media, which are seen as metaverse hours to capture.”
Morgan Stanley believes that the metaverse space has a lot of potentials, but the revenue opportunity in this sector will be smaller and occur over the long term. The analyst added that;
“The major challenge here is that the uncertain long-term regulatory environment around crypto creates more uncertainty about how large this monetization opportunity could be.”
Facebook remains the biggest player in the metaverse space and is expected to make massive moves in the software and hardware sections of the industry. Some crypto-focused protocols, including Sandbox and Decentraland, have also rallied massively thanks to the increasing adoption of the metaverse.