The 9 Biggest Virtual Reality Stocks

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After 3D printing, if you were to pick the next emerging tech category based on the amount of complaining per capita of capital invested, it might be augmented and virtual reality. That’s because the promise of merging the digital with the real world in different aspects of our lives is a long way off from materializing. In fairness, the expectations were pretty out of touch with reality. And the timeframe is truly infinitesimally small compared to the commercial introduction of something like 3D printers.

You’ll come across three main types of XR technologies but keep in mind that the lines continue to blur between what is real and what is a fancy trick of the light. Thanks to its Android operating system, Google has a massive market share in lower end phones as well as many high-end mobile phones.

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It was then discontinued in 2019 after the launch of the Rift S hardware, which offers superior image resolution, headset tracking, and other upgrades. The company has been experimenting with integrating VR into its e-commerce platform. The company has developed limited-release kiosks that have users navigating video game-like shopping malls in a VR world and browsing highlighted items for its Prime Day shopping holiday. Google disabled support for the Daydream View headset with the introduction of its Pixel 4 phones, and many VR experts now believe that the days of the phone-powered VR experience is over.

Microsoft provides digital content using the workspace environment. Most people know Amazon for shopping items online by using their e-commerce store. But when it comes to virtual environments, then Amazon shows it’s strengths with cloud services, IT infrastructure, and streaming videos. For sure, Amazon is the leader in e-commerce, and over the years, Amazon will grow and grow. Satista.com found that the global virtual reality and augumented reality market had a value of ~14.1 billion in 2017 and a forecast of 18.8 billion U.S. dollars in 2020. Virtual reality and augmented reality products were in high demand during the pandemic.

Apart from it, this industry is being segmented with software, hardware, PC, or smartphones. Even though an envisioned future of ubiquitous headsets and haptic gloves failed to materialize, VR has nonetheless made some great strides and found a home in a variety of industries. Nearly 43 million people will use virtual reality at least once per month this year, according to recent estimates. And the number of active VR users worldwide is expected to reach around 171 million. Sure, it’s still widely considered a gamer technology, and a niche one at that, but it’s also proven a valuable tool in e-commerce, retail, medical training, employee development, technology and non-gaming entertainment. Vertebrae intends to become a giant in the augmented and virtual reality field.

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NexTech AR Solutions is a Canadian company that offers a broad range of augmented reality products. Headsets and other hardware have been the main focus of the virtual reality market. The company continues to develop the augmented reality capabilities of their phones including increased use in apps. All this means that Virtual Reality is going to see a massive boom, and virtual reality stocks will also see a very bullish movement in the coming years. This San Diego Headquarters company is the world’s largest producer of mobile chips and baseband modems.

You can skip our comprehensive analysis of these companies and go directly to the 5 Best Virtual Reality Stocks to Buy. Vuzix makes AR and VR products for both the enterprise and the consumer market. This way, it will enable the users to interact with the digital environment from within the Virtual Reality area.

This sector of the industry is expected to drive the growth of virtual reality moving forward. The COVID-19 pandemic has also changed how businesses operate, leading to a rise in remote working, a trend expected to outlast the virus crisis. This will lead to increased interest in remotely managed professional training programs made easier through VR products. However, since the technology is still evolving, investors need to be careful of downsides as well. Game developers often steal all the attention in conversations around virtual reality but there is more to the new technology than use as just an entertainment product. Virtual reality gear is also important for remote assistance, training, mental health, education, and even fashion. The COVID-19 pandemic has accelerated advances within the industry that was already valued at over $17 billion in 2020.

Stocks To Invest In Virtual And Augmented Reality

If you strongly believe virtual reality will explode in popularity in the next couple of years, you should consider establishing a position. SNAP – VR and AR are exciting future technologies that will be as transformational as the Internet and smartphones. Snap , Himax Technologies , and Vuzix are three companies to play this trend.

In fact, technology for the blind could be worth billions, as the big R&D brains out there figure out ways to help the sightless see again. In mixed reality, digital objects appear within the natural world. Augmented reality is where your view of reality is “augmented” with digital additions.

Like other social networks, WeChat is primarily monetized through digital advertising, and the immersive potential of AR and VR suggests big potential in the ad space. Studies have shown that ads on these new display mediums tend to produce much higher engagement than do traditional digital ads.

This includes technologies such as mobile VR, 360-degree video, resulting in performance gains for VR devices by up to 50%. Similar to Google Cardboard, it allowed users to access the world of VR by attaching their smart mobile devices. In order to encourage interest and development in the VR market technology, Google introduced this product.

Here are eight of the most promising virtual reality stocks to keep an eye on, all of which are at the forefront of this cutting-edge technology. Alphabet is another one of the biggest virtual reality stocks; even as Microsoft developed VR devices with large price tags, Alphabet took a much different approach.

Features To Look For In Virtual Reality Stocks

Snap is positioned to be one of the best virtual reality stocks in 2021 with real long-term growth potential. The three-year return of the company was almost 200%; besides, the earning estimates continue to move higher over each quarter of 2020. According to April 2021, their stock has 20 strong buy recommendations, which are helping drive prices higher as well. On top of that, it is essential to note that VR technology can be implemented on a device like a smartphone or a headset and can help people navigate their lives with the power of a computer every step of the way. Virtual reality is being used in video games, online shopping, education, healthcare, and industrial applications. We are still at the tip of the iceberg in terms of where this tech will take us from 2020 to 2030 and in the distant future.

  • SNAP’s Snapchat Spectacles make extensive use of augmented reality technology.
  • Even though Facebook has a very bright future in terms of the virtual reality market, it should be mentioned that the majority (98%) of the company revenues are still generated from its ads.
  • However, the remaining part had revenue growth of 72% in 2020 and reached its peak with 1.8 billion.
  • Next-generation headsets will soon break into other markets such as video streaming and web browsing as well.
  • While talking about the benefits of investing in VR company stocks, it should be mentioned that the overall revenue of the Virtual sector is expected to reach 400 billion dollars by 2025.
  • Leveraging new 5G platforms, the chip enhances video, audio, and immersion.

This payments company serves the global iGaming industry, and it’s bringing its expertise to the U.S. Since pretty much everyone knows what GOOG does in its core business, there is no need to re-hash it here. However, I find it wild that we can own the most dominant advertising business on earth for less than 23x next year’s earnings (21x ex-cash). Typically, dominant, mature, global businesses that grow revenues in-line with GDP trade at higher multiples than this. Thus, given the relatively reasonable current multiple, I do not see much risk of long-term multiple compression here. Qualcomm Incorporated makes its presence known within the Virtual Reality sphere. It provides prerequisite sounds and visuals, as well as solutions for intuitive interactions.

Notably, over 91% of Microsoft’s HoloLens experiences are made with Unity. Moreover, this Zacks Rank #3 company launched its next-generation gaming console, PlayStation 5 . With a powerful 8-core AMD Zen 2 processor, 10.3 teraflops of graphics power, gorgeous 4K visuals and an immersive end-user experience. Having an extensive catalog of VR ready games has helped the adoption of the platform.

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This failure could also deter other companies from jumping into the market, creating an investment drought as it did for 3D television. First, a few industries have already embraced it, and the list of partners for Oculus VR is a testament to that. Sony has been doing VR for a long time, and their VR headset will allow users to play games, watch 3D movies, and even navigate the web. Sony also showed that they are willing to invest in VR by purchasing Soft Kinetic.

Its “other” revenue rose 72% to $1.8 billion in 2020, and it attributed most of that growth to robust demand for its Quest headsets throughout the year. The transition toward VR and AR has the potential to affect entertainment, recreation, and all facets of life the same way that smartphones and the Internet have done. Three companies that are on the leading edge of this movement are Snap , Himax Technologies , and Vuzix Corporation . VR event – Recreation of live event in order to share it with the wide audience and provide users with the feeling of actual presence.

The best VR company stocks include Facebook, Autodesk, Unity, Nvidia, and Snap. We have already analyzed that their market performance is at the highest level. For example, Autodesk VR company stocks have constantly been growing from 2015 to 2020, posting gains of 284% during that time. The return from 2015 to 2020 has been over 300%; the earning growth was over 130%. Besides, these virtual reality stocks will continue to grow over the years.

This makes you feel like you’re on a TV set, as well as in the comforts of a model home. Now imagine being able to explore these rooms and view different aspects of the structure using VR. Lowes specifically uses their products in the demonstrations, so I wonder what other big-name companies will start to jump on the VR company bandwagon. For those of you who have played the Watch Dogs game franchise, Osterhout brings the game to life. Their technology gives you valuable information at what you’re looking at, via their headset—or more accurately their glasses.