In a research note addressed to investors, investment banking company Morgan Stanley has called Facebook the most obvious stock to get exposure to the metaverse.
The financial giant called Metaverse a “next-generation social media, streaming and gaming platform” which would initially operate as an advertising and e-commerce forum. In addition, analysts have predicted the Metaverse market to reach $8 trillion.
According to a report by equity analyst Brian Nowak, the most obvious way to get exposure to metaverse is by investing in Facebook (now Meta), taking into consideration that the company succeeds in building and monetizing the Metaverse.
Rating it as overweight, the analysts noted, “We remain positive FB primarily because of the still under-appreciated core business growth, durability and free cash flow into 2022. They later added, “The extent to which FB has any success in building/monetizing a metaverse is all upside and would be another layer-cake of multi-year monetization,” they added.
Facebook changed its name to Meta in October, conveying its positive stance on the future of Metaverse. In addition to Facebook, Nowak mentioned four other stocks that could benefit from Metaverse. They were: Roblox (overweight), Alphabet (overweight), Snap (overweight), and Unity Software (equal weight).