- The metaverse is the next big investment theme, Morgan Stanley said in a note Thursday.
- Some stock sectors are already benefitting from it, such as gaming.
- "It can fundamentally change the medium through which we socialize with others," the note said.
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The metaverse is the next big investment theme and some stock sectors are already benefitting from it, Morgan Stanley said in a note Thursday.
Metaverse – a virtual world for immersive experiences where people across the world can meet, play, watch, and trade – has gained traction this year after major companies such as Meta Platforms (formerly Facebook) and Microsoft have pivoted their focus to the internet's next iteration.
"It can fundamentally change the medium through which we socialize with others," equity strategist Edward Stanley said.
Thus far, companies are building their own thriving versions of the metaverse, Stanley said. But a "true" metaverse is only when interoperability across all the companies is possible, he added. And this will take time.
"This will take many years and cross-company collaboration to allow users to seamlessly move across millions of experiences and take their digital avatars and possessions around with them," he said.
Stanley named companies that can benefit from the metaverse, including tech and gaming stocks, adding that shares of Roblox are already moving on the trend. Below, Morgan Stanley detailed the addressable market of metaverse by sub-theme.
Medium and Morgan Stanley Research
"Newsflow around the metaverse concept has been high and companies are embracing it in growing numbers," he said. "Of any major theme, companies and analysts have greater interest in the metaverse than any other theme at present."
Among the target audience are young gamers, mostly those under 17, though the average age is rising steadily, Stanley said.
The strategist also highlighted the importance of South Korea and how its more than 400 tech companies could accelerate the interoperability of metaverse.
"Metaverse activity and corporate launches are growing rapidly across a broad spectrum of geographies - from the US to China and South Korea," he said.