Top 2 Virtual Reality Stocks I’m Buying in 2022

I bought my first VR headset back in 2016. And at that time, I was surprised with how far it’d already come. I didn’t expect a cheap headset – powered by my phone – to be so immersive. 

There was a novelty component to it. I didn’t use it for extended amounts of time. And one of the best parts was sharing it with others to try for the first time. 

VR Stocks Go Far Beyond Video Games

Nonetheless, I saw the huge potential back then! And it’s much, much more than just video games. Even though, that’s an important market to get it off the ground. 

For example, there was one free app that put you in front of various audiences. You could choose an auditorium, board room or other settings. You could even upload your own virtual slide deck. From there, you could present in front of the audiences. Some even had random events and noises to better simulate a real audience. 

This was groundbreaking and is already helping many people overcome stage fright and improve their presentations… Although, this experience was just the tip of the iceberg… 

Real estate companies are allowing digital walkthroughs of their properties. Education is becoming more customized and immersive. People can virtually see the world who are less mobile or can’t afford to travel the world. And for those that can, the VR tourism can better prepare you for your real trips. 

To say the least, I’m excited for further AR and VR innovation. In the last few years, huge companies have been ramping up spending. To the tune of many billions of dollars. The most powerful companies in the world see the huge potential. And that brings me to how I’m investing in the biggest disruptive tech since the PC or the smartphone. 

I have roughly $60,000 in just one VR stock, Meta Platforms. I’ve covered why I’ve invested so much in past videos which I’ll link to down below. So, I’m not going to dive into this one today. Instead, I want to highlight its biggest competitors and why I haven’t invested in them (even though I’m excited for their products). On top of that, I’m going to share one of my favorite value tech stocks today. It’s also helping to power AR, VR and the growing metaverse. 

Augmented and Virtual Reality Competition 

One of the biggest hyped competitors to Meta is Apple. The largest fruit – ah company – in the world hasn’t been too stealthy with its VR and AR efforts. And thanks to the iPhone’s massive adoption, it’s already been testing a wide range of AR innovation. Overall, Apple has the scale and capital to have a huge impact on VR adoption. It also has to make big moves. There’s a solid probability that AR devices end up replacing smartphones – Apple’s largest source of revenue today. Even though that’s many years away. 

Recently, there are reports of Apple’s board testing the long-hyped VR/AR headset. Many reports have predicted a release each year since 2019. Although, it looks like more insider info is leaking this time around. And there’s a good chance of a release later this year or at least in 2023. The Apple headset will be its largest product release since the AirPods or the Apple Watch more than five years ago. 

Of course, it’s always good to delay and make sure the tech is up to par – or even better. Although, the faster you get it into customers’ hands – like Meta is doing –, the faster you can learn, iterate and build the ecosystem. It creates a faster feedback loop of innovation but still, it’s an important balancing act. 

For the next huge VR competitor… 

Microsoft has a solid head start with HoloLens for AR. I tried one of these headsets in Washington D.C. last year. Although, what really sets Microsoft apart is its business product ecosystem (Outlook, Excel, Teams, Cloud Services, etc.). These offerings have a huge userbase and that will be a vital piece to massive VR adoption. 

As VR headsets improve, they’ll replace normal computers and workstations. Imagine having as many virtual computer screens as you want, all without the bulky hardware and cords. With AR, you’ll be able to project high quality TV’s anywhere you want. On top of that, you’ll be able to teleport to work right alongside coworkers in the digital world. And already, this is a reality. But as the tech improves and becomes cheaper, we’ll see more companies use it. Meta is set to release its Cambria headset later this year. And it’s targeted at these commercial markets. 

Best AR and VR Stocks for Value Investors 

When it comes to VR stocks, Microsoft and Apple are huge competitors to keep an eye on. Along with Sony and many others. And I’m super excited to see what they come up with. Although, I haven’t invested in them and won’t likely anytime soon. But why’s that? 

Even though I like the companies and use many of their products, their valuations are still lofty – even after the recent correction. As a value investor, it’s hard to justify buying in. In the words of Warren Buffett… whether socks or stocks, I like buying quality merchandise when it is marked down. 

Meta is trading at a much cheaper valuation. It has public image issues which will likely persist but billions of people continue to use its services for free. And of course, Meta stock might get cheaper but I like it at current levels and trying to time the market is a fool’s game. Looking at the underlying business growth and promising start with VR headsets, it’s hard to pass up. Ten years from today, there’s a high probability it’s much, much higher. 

Now, with price relative to value in mind, that brings me to one of my favorite tech stocks today, Intel. I’ve already invested and I might be buying more soon. It’s a rock-solid company with a solid balance sheet and great growth prospects. Similar to Meta, it has some risks but the valuation is hard to pass up. Intel also has close to a 3.5% dividend yield with a very safe payout ratio. 

To see why I’ve invested in Intel check out this video: Investing in Intel vs. AMD. VR, AR and the metaverse are unlocking new revenue potential for both companies. And we’re just getting started. So, feel free to subscribe to my YouTube channel above. I cover a wide range of investing trends and topics. I also put my money where my mouth is, unlike many sources online. Enjoy!

Invest mindfully, 

Brian Kehm

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