VR Stocks and AR Stocks: Why is This Vertical Interesting?

Brandie E Blackler
7 Min read

Virtual Reality (VR) and Augmented Reality (AR) are growing in popularity throughout 2022 and 2023, hence the growing demand of interest in VR stocks and AR stocks.

While VR has been around since the 1990s, the momentum has certainly shown growth after the last few years given technological advances and a change in overall societal culture. It is a truly exciting time both for technology and the trading potential in VR and AR stocks!

In this article, we will overview why one should pay attention to this niche and factors to be aware of if interested in trading or investing in VR and AR stocks.

VR Stocks and AR Stocks: An Introduction

If one pays attention to ongoing trends in tech and financial markets, it comes as no surprise that VR and AR stocks are growing quickly in popularity and have possible investment or trading potential.

As the Metaverse has exploded in the years 2021 and 2022, the growth in VR and AR devices has reacted for the simple fact that they go hand in hand with the compatibility of the Metaverse.

It is projected that the Metaverse's global market could potentially reach $1.6T by 2030, showing that there is likely much to be anticipated in the next seven years (and beyond).

To break it down, Virtual Reality, or VR, is ultimately a simulated experience in 3D where the user can, quite literally, experience a computer-generated via various devices available on the market. This computer-generated environment has become very popular in the genre of video games, computer games, in-person demonstrations and much more.

Additionally, Augmented Reality, or AR, offers an interactive experience which is not only computer generated but also combines the real world in the experience. Focusing on sensory experiences between real-life and generated factors, it is equally becoming a popular aspect of many parts of everyday life.

Companies within many niche verticals are paying attention to these growing popular technologies, giving calculated potential to either invest or trade in companies which are associated or proprietary in these sectors.

Let's look more into why VR stocks and AR stocks may be attractive.

If you want to get started trading and investing in various stocks, indices, commodities, cryptocurrencies and more, feel free to register with a demo account today, where you can practise trading with virtual funds:

Trade with a risk-free demo account

Practise trading with virtual funds

Why Are Virtual Reality Stocks and Augmented Reality Stocks Attractive?

Virtual reality and augmented reality are revolutionary technologies poised to disrupt various sectors, from healthcare to manufacturing, as well as education. These technologies are also increasingly being used in both real estate and finance. With the increased application of VR and AR tech also comes an interest in virtual reality stocks such as the Roblox (RBLX) stock

Here are some factors to consider if one may be interested in investing or trading VR stocks and AR stocks:

Widespread Exposure

One thing that investors should remember is that VR companies are also making big plays in the AR space. By investing in such companies, you could essentially kill two birds with one stone. There's also a real chance to diversify your investment portfolio with exposure to two fast-growing sectors.

Google (GOOG) is one of the companies that promise to provide investors with exposure to both AR and VR technologies. Healthcare professionals, as well as factory workers, are already carrying out tests on Google Glass as they try to leverage its capabilities in their workplaces.

Big Data Analysis

VR and AR systems have the potential to streamline processes and reduce the amount of manual work needed, given the amount of data they can process. Qualcomm is could be a good potential AR and VR stock, given that it has started working on chipsets for powering AR and VR applications. These chipsets will make it easier for developers to come up with immersive systems.

Education Sectors

A number of virtual reality and augmented reality companies are working on immersive technologies for enhancing learning experiences.

The main focus at the moment is coming up with technologies that will bring about a paradigm shift in how people look at school education with VR, which appears to be the next evolutionary step for the schooling sector. Such innovations should also enhance how students retain information, interact in class, and gain knowledge.

Education potentially becoming a multi-billion sector essentially means AR-focused companies stand a good chance of generating significant value going forward. With a clear strategy and optimum focus, such companies should be able to generate more shareholder value.

Gaming Technology

The VR and AR stock market will also expose investors to the multi-billion gaming industry. Gaming companies are increasingly using the two technologies to enhance the overall gaming experience for players. Niantic's Pokémon Go is an example of one of the games leveraging AR to overlay fantasy characters into real environments.

Healthcare Sector

The healthcare sector is another industry poised to benefit a great deal from AR and VR innovations. AR is already allowing trainees and practising physicians to see data without detaching themselves from critical tasks. In the future, such technology will help practitioners understand how to administer new treatments better, and how to carry out procedures.

Augmented reality has also found use cases in helping pharmaceutical companies to improve patient education. By simply visualising complex products, pharmacists are now able to educate their audience regardless of age. Google Glass has already been used to perform operations for over 14,000 studies.

Vuzix is an AR stock for people interested in how the two technologies are advancing the healthcare system. The company has already developed an AR-powered apparatus that helps blind people to get around with ease. Its products 'M300 Smart Glasses' and 'Vuzix Blade' is also finding applications in enterprise, which is increasing the amount of work that gets done.

If you'd like to learn more about trading and financial markets, register for one of our free webinars today - Click the banner below:

Free trading webinars

Tune into live webinars hosted by our trading experts

What to Consider When Investing In AR Stocks and VR Stocks

Investors should always keep in mind that VR and AR companies need more time to come up with value-generating applications and systems to market. Overall expense and uncontrollable costs are factors that help to explain why VR companies are moving slowly on such innovations.

Facebook (META), upon pricing its Oculus device at $599 was forced to slash it twice, all in an effort of attracting sales. This tells the story of why VR companies have been reluctant in engaging in mass VR/AR production.

CEO Mark Zuckerberg has already indicated that it could take at least five to 10 years for the two to take off. Stocks such as Magic Leap stocks are also only available when companies go public, and this is something to keep in mind at all times.

VR Stocks and AR Stocks: The Conclusion

It's only a matter of time before innovations built around virtual reality and augmented reality come into being. 

What this means is that the two technologies will change the face of the world for good. In return, people who invest early in AR and VR stocks stand a better chance of potentially walking away with huge returns.

Remember, the best way to approach any type of trading or investment is by implementing risk management strategies first, to ensure you are aware of the risks and are managing them effectively.

Picking AR and VR stocks all comes down to a solid investment strategy that one can manage properly. Patience is key if one is to generate any returns from investing in the AR and VR sector.

Invest or Trade with Admirals

If you're ready to take your trading to the next level, Admirals has the options available to you.

Invest.MT5 is an elite investing account that offers traders the ability to invest in thousands of stocks and ETFs, on 15 of the world's largest stock exchanges.

Access real-time market data, premium quality market updates, low transaction commissions, and more, all while trading with a state-of-the-art trading platform - MetaTrader 5. Start investing today by clicking the banner below:

Other articles you may find interesting:

Open a Live Account

Trade the Live Markets and Trade Efficiently

NFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets and Admirals trademarks (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:
1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on Brandie E Blackler, Financial Analyst and Writer, personal estimations.
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

 

TOP ARTICLES
How to Invest in Coca Cola Shares And Dividends in 2023
Are Coca Cola Shares worth watching in 2023? The leading soft drinks company has been paying out dividends for decades, each time at a higher value, in addition to earning impressive returns. This makes it an attractive investment. It is one of the most well-known brands in the world,...
What Is Market Cap?
If you read articles about the stock market or the economy, you will probably have come across the term "market capitalisation" or “market cap” at some point. But what is market cap? And what can it tell you about a company?In this article, we will answer these questions in detail. Furthermore, we w...
Top 3 Best Biopharma Stocks to Watch
The pharma industry is a massive one and encompasses several segments. Among those is biopharma, which is likely set to become increasingly popular in the health sector. One of the fastest-growing segments within the pharma industry, biopharma is likely well-positioned to continue on the rise. We a...
View All