In its endeavor to acquire VR player Within Unlimited Inc. and its Supernatural app, Facebook, now rebranded as Meta Platforms, Inc. (NASDAQ:META), has been caught up in a legal mess. Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) have also entered the metaverse fray. Here’s what’s happening behind the scenes as these tech giants move toward the Metaverse.
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With the increasing popularity of the Metaverse among users, pressure is mounting on technology companies to stay ahead in the race. Huge investments are being made to enhance the user experience in the Metaverse, an immersive virtual world that can be enjoyed using augmented reality (AR) and virtual reality (VR) headsets.
While many tech giants are focusing on developing advanced Metaverse technologies, some have even resorted to acquiring small players in the field to stay ahead in the race. Meta is one of the companies that tried. However, a lawsuit seeking to prevent Meta’s CEO Mark Zuckerberg from buying Within Unlimited was filed in July 2022. The acquisition of Within Unlimited was announced by Meta in October 2021.
The lawsuit is now in the headlines as the Federal Trade Commission (FTC) has proposed to drop Mark Zuckerberg from the case only if he refrains from buying the VR startup in any capacity. In July, FTC Deputy Director Bureau of Competition, John Newman, said, “Instead of competing on the merits, Meta is trying to buy its way to the top.”
Amid this backdrop, let’s talk about Meta Platforms and two other Metaverse players, Microsoft Corporation and Apple Inc. A consolidated chart, designed using TipRanks’ Stock Comparison tool, is provided below.
Meta Platforms, Inc. (NASDAQ:META)
The $438.8-billion social media giant is one of the most active players in the Metaverse space. It operates a dedicated Metaverse platform, called Horizon Worlds, and offers users its Meta Quest 2 VR headsets. Also, the company has acquired multiple VR players in the past few quarters, which include the buyout of ImagineOptix Corp. in December 2021.
In June, Meta Platforms launched a digital clothing store, Meta Avatars Store.
On TipRanks, Meta Platforms has a Moderate Buy consensus rating based on 27 Buys, five Holds, and two Sells. META’s average price target is $224.21, which reflects upside potential of 37.33% from the current level. Over the past year, shares of META have declined 55.7%.
Microsoft Corporation (NASDAQ:MSFT)
The $2.06-trillion software company has exposure to the Metaverse space through its software, Microsoft Mesh. Also, the company is committed to integrating VR technologies in its existing offerings like Microsoft Teams.
Moreover, Microsoft is all set to acquire Activision Blizzard, Inc. in Fiscal Year 2023 (ending June 30, 2023). This buyout would strengthen Microsoft’s footprint in the gaming and Metaverse space.
Analysts covered by TipRanks are unanimously optimistic about the prospects of Microsoft, which commands a Strong Buy consensus rating based on 28 Buys and two Holds. MSFT’s average price forecast of $325.77 mirrors upside potential of 18.12% from the current level. Shares of MSFT have slipped 8.7% in the past year.
Apple Inc. (NASDAQ:AAPL)
The $2.69-trillion smartphone maker intends to extend its reach in the Metaverse space through planned investments, the development of VR headsets, and designing applications that would assist users in easily accessing the Metaverse. Also, it is worth noting that the company is already offering Metaverse applications on its platform.
The analyst community looks optimistic about Apple and has a Strong Buy consensus rating based on 23 Buys, four Holds, and one Sell. APPL’s average price target of $183.07 reflects upside potential of 9.28% from the current level. In the past year, APPL stock has advanced 12.9%.
Concluding Remarks
The Metaverse is getting larger by the day, with its users demanding enhanced experiences and tech companies aggressively trying to fulfill their demands. According to Statista, the global Metaverse market is expected to be worth $47.48 billion in 2022 and expand to $678.8 billion by 2030. Thanks to their investments, AAPL stock, META stock, and MSFT stock all have the potential to gain as the Metaverse market grows.
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