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.

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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.

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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.

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4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on Brandie E Blackler, Financial Analyst and Writer, personal estimations.
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