Last Updated on January 1, 2022 by Henry John
Ever watched one of those funny videos of people wearing a VR headset for the first time and going nuts when they realize how real a virtual world can seem?
Augmented and virtual reality is taking the world by storm and are no doubt two of the transformative technologies of the near future. As a matter of fact, they are already transforming the world as we know it.
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VR and AR stocks are the kind of stocks that growth investors will be salivating over. According to statista, “the global augmented reality (AR), virtual reality (VR), and mixed reality (MR) market is forecast to reach $30.7 billion in 2021, rising to close to $300 billion by 2024”. In 4 years, this market is expected to 10x.
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The global economic shakedown caused by the pandemic and the recent tech stocks meltdown has affected a lot of AR and VR stocks resulting in a significant drop in their stock prices, thereby creating an opportunity for new investors to buy in cheap.
If you are interested in investing in virtual reality and augmented reality stocks, here are 8 VR and AR stocks to consider:
1. Meta Platforms Inc (FB)
Meta Platforms Inc, develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide.
The company is the world’s largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos.
It is best known as the developer of the Facebook app, however, its ecosystem of social media platforms includes Instagram (which it acquired in 2012), Messenger, and WhatsApp (which it acquired in 2014). All of these apps can be accessed via mobile devices and desktops.
In 2014, Meta Platforms acquired Oculus, a company that produces virtual reality headsets, deeming virtual and augmented reality the future of engagement. Meta Platforms is seeking to dominate ‘the future of engagement’.
After the Oculus acquisition, Meta Platforms renamed it Facebook Reality Labs, now, the subsidiary focuses on ‘bringing the future of connection within virtual and augmented reality’.
Today, Meta Platforms’ OculusVR headset is one of the two major VR headsets being sold in the market today, and the other being Sony’s Playstation VR headset.
Between 2020 and 2021, Meta Platforms’ VR business has more than doubled, as the company’s “other revenue” business segment grew by 146% year over year according to its 2021 first-quarter report.
And in case you are wondering, Meta Platforms’ Other Revenue business segment is primarily Oculus. The company is already pulling in billions in yearly revenue and is not far from making it a billion in a quarter.
Impressively, the company operates at a 30%-plus margin for over five consecutive years and a gross margin above 80%. In 2020, the company generated $85.97 billion in revenue and had a net profit margin of 33.90%.
The social media and virtual reality giant, Meta Platforms Inc., was founded in 2004 and is headquartered in Menlo Park, California.
2. Nvidia (NVDA)
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, Graphics and Compute & Networking.
The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game-streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise design; GRID software for cloud-based visual and virtual computing; and automotive platforms for infotainment systems.
The Compute & Networking segment offers Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; and Jetson for robotics and other embedded platforms.
The company’s products are used in gaming, professional visualization, datacenter, and automotive markets.
NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet, and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.
NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.
3. Vuzix (VUZI)
Vuzix Corporation designs, manufactures, markets, and sells augmented reality (AR) wearable display and computing devices for consumer and enterprise markets in North America, the Asia-Pacific, Europe, and internationally.
It provides M300XL, M400, and M4000 series of smart glasses for enterprise, industrial, commercial, and medical markets; Vuzix Blade smart glasses; waveguide optics and related coupling optics; and other AR products, such as binocular next-generation smart glasses and AR smart glasses product with 3D, stereo cameras, and 3D camera vision, as well as custom and engineering solutions.
The company sells its products through resellers, direct to commercial customers, and via online stores, as well as various Vuzix operated web stores.
Vuzix Corporation was founded in 1997 and is headquartered in West Henrietta, New York.
4. AutoDesk (ADSK)
Autodesk, Inc. provides 3D design, engineering, and entertainment software and services worldwide.
The company offers AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects; BIM 360, a construction management cloud-based software; AutoCAD, a software for professional design, drafting, detailing, and visualization; AutoCAD LT, a drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool; and Industry Collections tools for professionals in architecture, engineering and construction, product design and manufacturing, and media and entertainment collection industries.
It also provides Inventor tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; Vault, a data management software to manage data in one central location, accelerate design processes, and streamline internal/external collaboration; Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; and Shotgun, a cloud-based software for review and production tracking in the media and entertainment industry.
In addition, the company offers PlanGrid, a cloud-based field collaboration software, which provides general contractors, subcontractors, owners, and architects access to construction information in real-time; Revit software for building information modeling; and BuildingConnected, a bid-management solution.
Autodesk, Inc. sells its products and services to customers directly, as well as through a network of resellers and distributors. The company was founded in 1982 and is headquartered in San Rafael, California.
5. Microvision (MVIS)
MicroVision, Inc. develops lidar sensors used in automotive safety and autonomous driving applications.
Its laser beam scanning technology is based on micro-electrical mechanical systems, laser diodes, opto-mechanics, electronics, algorithms and software.
The company also develops micro-display concepts and designs for head-mounted augmented reality (AR) headsets, as well as 1440i MEMS module that can support AR headsets; Interactive Display modules used in smart speakers and other devices; and Consumer Lidar used in smart home systems.
In addition, it provides PicoP, a scanning technology that creates full color, high-contrast, and uniform image over the entire field-of-view from a small and thin module.
The company sells its products primarily to original equipment manufacturers and original design manufacturers.
MicroVision, Inc. was founded in 1993 and is headquartered in Redmond, Washington.
6. Matterport (MTTR)
Matterport, Inc., a spatial data company, focuses on digitizing and indexing the built world. It offers Matterport digital twins, a 3D data platform to design, build, operate, promote, and understand spaces.
The company offers Matterport Capture, an application that enables to capture depth, data, and imagery of a space using 3D cameras, 360 cameras, and iPhones; Matterport Workshop application to customize, add additional details, and share spaces; Matterport Showcase application for audience view and explore space in its final format; and Matterport VR to experience virtual reality.
It 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. was founded in 2011 and is headquartered in Sunnyvale, California.
7. Unity Software (U)
Unity Software Inc. operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices.
The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.
The company was founded in 2004 and is headquartered in San Francisco, California.
8. Snap (SNAP)
Snap Inc. operates as a camera company in the United States and internationally.
The company offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate through short videos and images.
It also provides Spectacles, an eyewear product that connects with Snapchat and captures video from a human perspective; and advertising products, including AR and Snap ads.
Snap Inc. was founded in 2010 and is headquartered in Santa Monica, California.