Best Virtual Reality Stocks
It’s a great time to buy virtual reality stocks. The potential utility of VR technology is practically limitless. Buying now, while the technology is still being refined, could be a shrewd move. Virtual reality stocks could become much more valuable if this technology takes off as expected.
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Virtual Reality: Industry Overview
Video games are the most popular application of VR technology, but it can be used in a variety of application. VR has the potential to revolutionize several massive industries, including healthcare, defense, education, real estate, manufacturing, retail, and more.
Researchers at Mordor Intelligence have reported that the global VR market was valued at $3.13 billion in 2017 and is expected to grow at a CAGR of 58.54% to reach $49.7 billion by 2023. In 2014, there were less than 1 million VR users, but the number of people using VR had already exceeded 150 million in 2018.
Global virtual reality revenue was $7.2B in 2017, and Greenlight Insights forecasts that industry revenue is on track to hit $75 billion by 2021, so including some VR stocks in your portfolio could be a good idea.
If you want to invest in the VR industry, you need to learn the players. Big Tech names are developing VR to maintain their lead, while startups are disrupting markets with virtual reality innovations.
Let’s look at some of the best virtual reality stocks on the market. The VR industry is segmented by product type into hardware, software, gaming console, desktop, and smartphone.
Top Virtual Reality Stocks: Hardware
Facebook (NASDAQ: FB)
Facebook’s Oculus headset is leading the market. Users can immerse themselves in their favorite digital entertainment; including games, movies, and more. The company just released a new version, the Oculus Go, that is totally self-contained; no need to hook it up to a computer. The new Oculus Go is pretty affordable too. At only $199 retail, it’s significantly less expensive than previous models.
If anyone has the resources to win the VR rat race, it’s Facebook. The company has a strong consumer base, brand recognition, and plenty of cash. If Facebook can commercialize VR for facilitating social interactions it has a massive user base to market itself to.
Vuzix Corp (NASDAQ: VUZI)
is another player in the hardware segment of the world of Virtual Reality stocks. Vuzix makes VR and AR products for both consumer and enterprise customers. Vuzix makes wearable display devices that allow users to interact with digital content in a VR environment.
The company has an impressive IP portfolio of 66 patents and 43 pending patents, so it’s a potential acquisition target.
HTC Corp. [Taiwan, GDR: HTCKF)
Most people know HTC as one of the leading smartphone producers in China, but the company sells tons of products. HTC also sells a VR headset, the HTC Vive VR system. The company released a new, self-contained version of the Vive headset in early 2019. Vive Focus requires no external computer to use, but it has a hefty price tag compared to the Oculus Go. HTC’s Vive Focus, with hand sensors, retails for $799. That’s a lot of dough for what is essentially a novelty, at this point.
VR Stocks: The Hardware Leader
So far, it looks like Facebook is leading the race to mainstream consumer adoption of Virtual Reality. The Oculus Go’s low price makes it much more accessible for the average shopper. If you’re slightly interested in VR, a $199 headset sounds like a good place to start ignoring the technology. The Oculus could be huge for Facebook down the road.
Best Virtual Reality Stocks: Software
Qualcomm Inc. (NASDAQ: QCOM)
is not a pureplay VR stock, but it’s exposed to the VR space. The company provides visual, sound, and intuitive interactions technology solutions for creating immersive VR experiences.
Qualcomm’s Snapdragon VR SDK offers access to advanced technical features on Snapdragon VR devices. Developers use VR SDK to create complex virtual environments on a user-friendly platform.
Best Virtual Reality Stocks: Gaming Console
Sony (Japan, ADR: SNE)
Playstation VR is one of the most accessible forms of virtual reality technology. As of March this year, Sony announced they sold over 4.2 million VR headsets in less than three years of selling the device. Many competing VR devices need to be connected to a powerful computer, but Sony’s unit connects to a PS4 console. That removes a significant barrier to entry for most casual gamers who already own PS4 consoles. Playstation VR starter bundles retail for $379, no console included.
The Best Virtual Reality Stocks: Desktop
Microsoft Corporation (NASDAQ: MSFT)
Microsoft has two key virtual reality products lines: HoloLens, a commercial-use headset, and mixed reality, a mixed reality platform introduced as part of Windows 10.
The mixed reality platform, also known as augmented reality(AR), helps to overlay digital content on the physical world. For example, Dynamics 365 users can interact with virtual holograms on physical surfaces.
HoloLens is a high-quality headset designed for commercial-use VR and AR applications. With prices starting at $3,000; it’s clearly not intended for retail users. However, the commercial market for VR is likely larger than the consumer sector. Microsoft’s enterprise-level VR solutions could have more long-term potential than any other segment of the VR market.
Top Stocks In Virtual Reality: Smartphone
Apple (NASDAQ: AAPL)
has made some forays into the augmented reality space, especially with the addition of the ARKit augmented reality platform to the iPhone in 2017. Apple recently released ARKit version 3 with enhanced features for virtual developers. The support for VR developers on its platform suggests that Apple is positioning for a future with more VR applications.
Rumor has it that Apple is working on a line of AR/VR headsets. However, the firm has yet to publicly announce its plans with VR. Nonetheless, Apple will be a leading virtual reality stock if it gets serious with VR. While there are already numerous iPhone compatible VR headsets, it would be a game-changer if Apple announced they were producing a branded VR headset.
Google (NASDAQ: GOOGL)
Google has a massive portion of the worldwide mobile OS market, so it’s no surprise it’s focusing on mobile VR technology. The company is developing its own immersive virtual experience and offers tools for developers to build out the VR experience.
Google’s Android OS comprises approximately 75% of worldwide smartphone OS market share, and they also control 28% of the tablets market share. Google is perhaps in the best position to unlock the mass-market potential of Virtual Reality.
The company is working on tons of high-tech stuff, and the public is only aware of the tip of the iceberg. Google filed a patent last year for virtual reality ‘roller skates’ that allow users to walk more naturally in virtual worlds. As one of the world’s leading innovators, Google likely has more tricks up its sleeve that will grow the virtual reality markets.
The Bottom Line
Virtual reality stocks offer great opportunities for growth. The potential applications of this technology are basically limitless. These companies are in an excellent position to capture VR market share as the industry grows.
Keep an eye on these virtual reality stocks, and follow The Stock Dork for the latest market updates.
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