Best Virtual Reality Stocks

Virtual reality, or VR, is a rapidly expanding technology with the potential to be used across a variety of industries. It has come a long way in the past few years, and sectors already using and experimenting with the technology include gaming, healthcare, automotive and retail. A growing number of opportunities to invest in companies has already involved VR, with each one looking to take a foothold in the virtual reality market. Benzinga will take you through the best virtual reality stocks to buy now.

Best Virtual Reality Stocks Right Now

Overview: Virtual Reality Stocks

The consumer virtual reality market is split into hardware and software, with the gaming industry a massive player in the technology. So far, in 2021, the VR market size is $2.8 billion, with the VR gaming market size $1.4 billion. In addition, VR headset sales in 2021 are up to 6 million. 

We mentioned earlier that the virtual reality market is continuing to grow, and that is true. But, in 2020, revenue declined to $3.89 billion due to the coronavirus pandemic. However, it is expected to climb again this year to $4.84 billion, with the market predicted to be worth around $12.9 billion by 2024. 

There are various companies already making headway with the technology. For example, in the automotive sector, brands like BMW (ETR: BMW) use virtual reality in vehicle development to look at new designs and review engineering. They worked with gaming company Epic Games to develop its VR technology. 

As online shopping has become more prominent in our lives, especially during the pandemic, companies such as British retailer ASOS (LON: ASC) are working on developing a VR shopping experience for customers.

Various companies are working on integrating VR into their businesses, as you’ll see in the stocks below. If you are interested in VR, it is an exciting time. In addition, it opens up an opportunity for investors with stocks at all levels developing VR, from companies trading at under $5 to shares priced over $100. 

Best Online Brokers for Virtual Reality Stocks

Whether you are looking for a big company like Apple or a more affordable stock priced below $10, you will need a broker. Below is a list of brokers that will offer various virtual reality stocks to invest in. In addition, some brokers will allow you to take positions premarket, so make sure to look over the biggest premarket movers each morning for a trading opportunity.

Features to Look for in Virtual Reality Stocks

1. Money: Developing VR technology to suit a business’s needs could be costly. So the stock you look at must have plenty of money available. For example, Facebook started laying the groundwork for its VR venture by acquiring VR companies. Facebook acquired Oculus VR for $2 billion in 2014, which shows that becoming the dominant player in the virtual reality industry won’t be cheap. 
2. Experience: An essential feature when looking for a VR stock is experience. As mentioned, Facebook’s strategy is buying smaller companies with expertise in the field. However, acquisitions aren’t the only way a company can gain expertise. They may make new hires or work with companies already in the industry. Therefore, make sure the company you are focused on has the required knowledge. 
3. Gaming: Gaming is a big part of VR technology. Gaming companies have a vital role in the sector as they can help build the images people see and bring them to life. BMW worked with Epic to create the VR technology it needed, and it would not be surprising to see other companies do the same.

Invest in a Fast Growing Industry

Investing in a virtual reality stock means investing in a company involved in a rapidly growing market. However, it also means being patient. Just because the market is expanding quickly, it does not mean the stock will follow suit. 

When looking for a virtual reality stock to invest in, research is vital. It may be best to split your investment into more than one VR stock as there are loads of use cases for the technology, and you will be able to benefit across the board. 

Frequently Asked Questions