The metaverse has emerged as one of the most exciting new frontiers in technology. According to Strategic Market Research, the market size for the metaverse may grow to $1.6 trillion by 2030, representing a compound annual growth rate (CAGR) of 38%.

Many assets in various tech subsets will become metaverse stocks as a result of that level of development. However, two firms are predicted to deliver outsized returns from the metaverse – Unity Software (U -0.24%) and Zoom Video Communications (ZM -3.42%). Let’s have a look at these two huge metaverse companies with the potential for long-term growth.

1. Unity Software

Because it specializes in offering many of the solutions required for growth in the metaverse, Unity is expected to benefit. Its software, which was initially created for top-level video games, aids developers in creating 2D and 3D representations of spaces. It is a market leader among video game designers that know how to create metaverse-style settings.

The appeal of Unity extends far beyond gaming. The architecture, film, robotics, construction, and automobile industries all benefit from Unity’s tools. In January, Hyundai Motor unveiled a collaboration with Unity to create a “digital twin” of an existing auto plant that may be used to enhance manufacturing processes.

In the first three months of 2022, Unity reported a record revenue of $320 million. While this represents a 36% increase year over year, it indicates some slowing from the 44% growth in last year’s quarter. Furthermore, both cost of operating expenses and revenue grew at a greater rate as a result of stock-based compensation costs and amortization of intangibles, which were not factored in. Non-GAAP net losses came in at $25 million compared to $27 million in the same period last year.

Furthermore, the firm anticipates revenue of $1.35 billion to $1.425 billion in all of 2022. This is a 25% increase at the midpoint, which implies that the metaverse stock will continue to decline. Unity’s stock price has tumbled over 80% from its 52-week high in November as investors have not reacted favorably to this news.

While the business fundamentals look strong, investors should also keep in mind that this has pushed Unity’s price-to-sales (P/S) ratio to 10, which is near an all-time low. Given the company’s bright future for its emerging metaverse growth driver, Unity’s struggles seem to be temporary.

2. Zoom Video Communications

Zoom, on the other hand, has a very unlikely metaverse play. As a tightly controlled population turned to Zoom for business meetings and personal conversations, this stock became a pandemic favorite.

Many occupations have moved out of the office permanently, and when people who live far apart need to interact, they’re turning to Zoom for assistance.

“Zoom’s virtual reality-based experience lets two people across the world appear to be in the same room by creating a virtual reality. The firm has also incorporated a whiteboard feature that allows all meeting participants to see the same visuals,” says Datanyze. “Such progress should help Zoom in retaining its 75 percent market share in video conferencing,” according to Datanyze.

Despite the fact that revenue has slowed down since pandemic highs, revenue in its first fiscal quarter of 2023 (ended April 30) increased 12% year over year to almost $1.1 billion. Since it spent heavily on itself, R&D, and sales and marketing costs went up by 34%, resulting in a 50% decrease in net income to $114 million during the time period.

Growth, on the other hand, might not improve right away. However, one intriguing prediction came from Cathie Wood, who currently owns Zoom in the ARK Innovation ETF at number one. Wood predicted that by 2026, Zoom will trade between $700 and $2,000 per share. Some analysts believe Wood is probably incorrect about Zoom’s growth rates given its 80% drop to around $110 per share.

However, with a P/S ratio of just eight, the stock price is almost certainly reflecting the business’s challenges. Over time, as a metaverse-based online meeting ecosystem develops, Zoom Inc.’s stock will most likely rise significantly.

When a major market legalizes marijuana, stocks in the industry may shoot up on news of the law’s passage. Even if it doesn’t guarantee that every company will profit, it may help to highlight the industry’s potential for growth and remind investors of the prospects available.

That is what the sector needs right now–some form of good news to get investors interested in the industry again. And it might not be very long before it arrives.

Is it possible that Germany will legalize marijuana in the near future? 

Last year, a new government was elected in Germany under Olaf Scholz, who took the helm after Angela Merkel served 16 years as chancellor. Cannabis has also gotten a lot of attention since the shift in power. Medical marijuana is legal in Germany, but the government is considering allowing adult-use cannabis as well. Furthermore, there’s a lot of incentive to do so — some projections predict it will generate over $5 billion in cost savings and tax revenue for the nation. There may be 27,000 new employment opportunities as well.

This may be beneficial to multiple cannabis companies.

 Tilray Brands (TLRY 14.60%) Canadian cannabis producer is one company that is ecstatic about these possibilities. One part of its ambitious plan to reach $4 billion in yearly sales by the end of fiscal 2024 (which ends in May) involves capitalizing on the European market. Tilray already has a medical distribution firm, CC Pharma, in Germany, which may aid it to speed up growth across the continent. CC Pharma has a network of European suppliers with which it collaborates and has “preferred access” to almost 13,000 pharmacies in Germany. For the last fiscal year (which covers the period from April 1 through May 31), distribution revenue for the company (which is primarily generated by CC Pharma) was $277.3 million.

Tilray’s sales over the last year were $617 million, suggesting it may be difficult to achieve its aggressive goals in such a short time. It will undoubtedly profit from the possibilities in Germany, but management might be too optimistic about how the firm will perform.

Is it now a good time to invest in cannabis?

The cannabis industry, on the other hand, appears to be a sleeping giant at the moment. Investors appear to have abandoned it, but there are some huge possibilities out there. When optimism has returned to the sector (and legalizing marijuana in Germany might do the trick), stocks could surge as many of them appear overdue for a pick-up in enthusiasm. Buying ahead might provide substantial gains later for investors who buy early.

In June, Bitfarms, a cryptocurrency-mining firm, sold 3,352 Bitcoins (BTC -2.46%), almost half of the Bitcoins it held at the time. This may appear to be a drop in the bucket when you consider that more than 19 million Bitcoins have already been mined. But it’s not as simple as that.

Bitcoin’s value has shot up considerably during the previous several years, owing to a supply-demand imbalance. And this imbalance was aided by miners like Marathon Digital, Bitfarms, Riot Blockchain, and others. It could also cause the price of Bitcoin to drop even more if Bitfarms’ plan to sell becomes widespread.

Why you should watch Bitcoin miners

It cost Bitfarms roughly $8,700 in the first three months of 2022 to mine one Bitcoin. The value of Bitcoin has decreased by more than 70% since its peak. Despite this fall, however, Bitfarms maintains a healthy gross margin given the cost of mining.

However, there’s a catch. Bitfarms does not accumulate costs that can be paid in bitcoin. Its expenses are settled in fiat currency. The same may be said for Riot Blockchain and Marathon Digital. While the profit margins appear to be ideal in principle, they must figure out how to obtain legitimate money from the government somehow.

In recent years, the major Bitcoin miners have had simple access to funding to pay their expenses. As a result, as bitcoin bulls, they’ve been keeping the Bitcoins they’ve mined since then. Marathon Digital, for example, hasn’t sold a single Bitcoin since October 2020 and has 9,941 on hand.

It’s getting increasingly difficult to obtain financing. The stock market has taken a beating. Interest rates have gone up. And numerous cryptocurrency firms are failing every day, including Bitfarms, Marathon Digital, and Riot Blockchain, which each need millions of dollars in operational spending each quarter. To compensate for its high operating costs, miner Bitfarms must raise cash from somewhere. That’s how it works for Bitfarms: it sells more than half of its Bitcoins in order to survive.

Riot Blockchain is one of the newest bitcoin sellers in the market, although on a smaller scale. The business began selling some of its Bitcoin in March and has continued to do so every month since then. However, because the firm still stores a portion of the Bitcoin it mines every month, its reserves have grown to 6654 Bitcoins as of June 30.

The large Bitcoin miners kept almost all of the Bitcoins they created over the previous several years, resulting in restricted circulation. Demand from investors and firms began to grow, and the price rose as a consequence. Miners had a crucial role in creating the supply-and-demand imbalance.

If miners become net sellers of Bitcoin, this trend may change course. Marathon Digital, for example, has $86 million in total liquidity as of June 1 and millions in quarterly operating costs. That money must originate from somewhere. The firm might also opt to sell its bitcoins.

If Bitcoin miners become net sellers, the supply-and-demand imbalance could reverse, and prices may fall even more. Personally, I’m still bullish on Bitcoin’s long-term prospects. That said, liquidity for Bitcoin miners is a genuine concern that merits attention.

Floor & Decor Holdings (FND 2.58%), if only because it might be a classic Berkshire Hathaway stock, is one of the more interesting prospects in Warren Buffett’s portfolio. It has the long-term product appeal that attracted Buffett as a hard flooring vendor. However, at a somewhat greater price tag, it would appeal to his more risk-tolerant lieutenants.

Floor & Decor, on the other hand, appears to be a rising force in the home remodeling industry. Its current size, addressable market, and rapid expansion suggest it will benefit investors over time.

Warren Buffett and Floor & Decor

Berkshire Hathaway disclosed its position in the 13-F filing for the third quarter of 2021. At that moment, Berkshire owned about 817,000 shares. That holding increased gradually throughout Q4 and reached almost 4.8 million shares by the first quarter of 2022.

The significant Q1 increase in shares may have been influenced by the plummeting stock price. In that quarter, the stock fell 38% due to the bear market. Furthermore, as it sells at a 45 percent discount to its January 2022 opening price, the fall has continued.

Buffett’s team just invested in a number of firms, yet the firm’s position in the market might make Floor & Decor one of Buffett’s most successful investments. Indeed, whilst it competes with major home renovation chains such as Lowe’s, Home Depot, and many small independents, it is up against some significant players.

Still, because it specializes in hard flooring, Floor & Decor may provide a wider range of alternatives than its large rivals. Additionally, its size allows for bulk purchases that independent flooring stores may find difficult to match.

Its success in the market is indicative of its potential. It has operations in 34 states, making it almost a national business. However, with only 166 outlets in Q1, achieving its objective of 500 stores over the next few years will take some time. Its presence is also significantly smaller than that of Home Depot, which has over 2,300 locations.

Consider Floor & Decor stock

Buffett’s crew seems to have discovered a pearl in the mire with Floor & Decor. Obviously, worries about a recession and rising expenses have affected the stock.

Nonetheless, it continues to register double-digit sales growth in the face of strong competitive and economic pressures. Given the number of stores compared to Home Depot, the retail stock could considerably benefit investors as Floor & Decor expands and broadens its nationwide presence.

The stock market collapse of 2022 has been harsh on Intel, with shares down 27% thus far in 2018.

Intel, on the other hand, has been a top investment over time, boosting investors’ wealth considerably due to a combination of stock price appreciation and a fat dividend. For example, $100,000 in Intel stock purchased at the start of 2007 was worth just shy of $390,000 as of 2021 if dividends were reinvested.

Now, can an identical investment in Intel stock help you retire a multimillionaire in 15 years? Let’s find out.

The solid dividend is here to stay

The company’s dividend has been a major factor in increasing investors’ wealth over time. The good news is that, despite facing headwinds, the firm appears poised to maintain its hefty dividend yield of around 4%. Intel’s revenue is anticipated to remain flat through 2022. Earnings are expected to drop to $3.49 per share from $5.47 per share in 2021.

Analysts anticipate that Intel’s financial performance will improve after the current downturn.

The higher earnings from Intel mean that there is potential for an increase in the dividend in the long run. As a result, investors seeking a steady stream of dividends can rely on Intel to grow their assets over time and help them approach their goal of becoming millionaires. However, because of the rise in Intel’s addressable market, it won’t be surprising if the stock speeds up as well.

Intel stock could deliver impressive upside

The stock of Intel might not have set the market on fire in recent years, but it may do so in the future owing to greater end-market possibilities.

So far, Intel’s main source of income has been supplying CPU chips to PCs, but that is changing. In the first quarter of 2022, the client computing division was its biggest revenue generator, with sales of $9.3 billion. It represented half of the company’s top line but fell 13% year over year in terms of revenue.

The data center and artificial intelligence department, on the other hand, hauled in $6 billion in sales last year, up 22 percent from the previous year. Sales of edge networking devices grew 23% year over year to $2.2 billion. Accelerated computing and graphics revenue increased by 21% annually to $219 million because of Intel’s entrance into the discrete graphics card market

As a result, there are a number of growth opportunities for Intel stock in the long run. In fact, according to Intel, the overall addressable market is worth $450 billion in 2026, with just $90 billion coming from traditional client computing. The remainder of the markets that Intel plans to enter will likely see double-digit growth in the future.

This suggests that Intel’s growth rate could rise and result in an improved value for the company. It won’t be surprising to see the stock outperform the broader market over the next decade or more. And, combined with its decent dividend yield, this might help investors get closer to their ultimate goal of retiring wealthy.

That is why long-term investors with a patience perspective can take notice of this chip stock, which is valued at just six times earnings now.

Did you know that a bad market isn’t technically a bear market until the S&P 500 benchmark index is at least 20% lower than its most recent peak? We’re not there yet. The index, which dropped precipitously for a few days before recovering, is about 19 percent below the high water mark it reached in January.

We’ve likely already emerged from a bear market, but it might be irresponsible of us to not be ready for the possibility of more severe conditions ahead. These two leaders in the healthcare industry are as solid as they come. Here’s why you can count on the growing dividend payments coming from these two healthcare companies over time.

Abbott Laboratories

You’ve undoubtedly seen one or more of Abbott Laboratories’ COVID-19 diagnostic products. If you can’t seem to locate any baby formula, you’re probably aware of this firm’s nutrition sector as well.

What you may not know is that Abbott Laboratories just paid its 394th quarterly dividend. For the past 50 years, the company has also increased its payout.

If you have diabetes, you’re probably already aware with the newest revolutionary drug Abbott Laboratories has produced in a long time.

The Freestyle Libre 3 was cleared by the FDA in May to continuously monitor blood sugar levels for up to 14 days at a time. The device is only the size of two stacked pennies, which is smaller than the continuous glucose monitoring (CGM) it may find itself competing against, the new G7 from Dexcom.

The G7 was designed by Dexcom for just 10 days of continuous wear, yet it has not been approved by the FDA. Abbott’s CGM sales could soar due to a lack of strong competition for the Freestyle Libre 3 in the United States, potentially eroding demand for COVID-19 tests.

Even though Abbott’s Freestyle Libre 3 seems like it’s on track to gain and maintain a prominent portion of the lucrative CGM market, shares of Abbott are about 23% under their peak that was reached in January.

In the first quarter, Abbott Laboratories Corp. (NYSE:ABT) stock provided a 1.7 percent yield at current values. While this yield doesn’t appear to be very attractive on its own, CGM sales might help it expand considerably.

Johnson & Johnson

Consider Johnson & Johnson if you are willing to accept a lower rate of growth in the future in exchange for a higher yield now. This healthcare giant is ideal for dividend investors, with an AAA credit rating and a 60-year history of consecutive dividend increases.

At the moment, there is a lot of interest in Johnson & Johnson because it will split its consumer goods sector into a separate new business in 2023. This implies that current investors will have two dividend-paying stocks for the cost of one in their portfolio.

In the meantime, its consumer goods business has not been a significant source of development for some time; however, its pharmaceutical company is more robust than ever. Tremfya is an example of a brand-new psoriasis therapy that had sales growth of 41% year over year in Q1 and is on track to produce $2.4 billion in revenue in 2022.

Johnson & Johnson has seen its quarterly payments nearly double in the last five years. The stock now pays a 2.5 percent yield, and after it starts its consumer business, investors will receive dividends that exceed or match those they are receiving presently.

If a robust consumer health segment isn’t holding it back, J&J’s soon-to-be streamlined operation will be able to provide outstanding development in the future. That makes it an excellent addition to any income-earning investor’s portfolio right now.

Investors looking to add to their fintech portfolio should consider Nelnet (NNI 0.49%) and Upstart (UPST -19.71%).

These are two of my top 15 positions, and I don’t plan on giving up any of them. In terms of maturity, risk-reward, and other factors, I wouldn’t call that a fair swap because the businesses are so different to one another. Nelnet is for individuals who aren’t aware they have a huge portfolio of government-backed student loans on their books, which Jim Gillies likes to compare to an iceberg slowly melting. It’s billions of dollars in cash.

If we do see student loan relief, it will be from the government-backed ones, so it’s basically the government writing Nelnet a check and giving them that money quicker, so there’s no risk even though there is some headline risk. They also have a large servicing portfolio where they’re making income off of these other firms by managing their debt.

It’s really a capital allocation strategy since they have all this money, and what they do with it from here is the question. If you’ve spent money on FACTS Management or PowerSchool (PWSC 1.36%), I think with any of these services, a significant amount of your financial management projects for the colleges are based around it. They have a variety of companies like that. That company is fantastic. I’m invested in it, but it’s a significantly different risk-reward than Upstart. I personally own them both, and I wouldn’t trade one for another, but both of those firms are wonderful to me.

To put it another way, I’d say they’re two distinct businesses.

I came across them when my daughter was going to be a sophomore in high school, and I had not yet started making significant payments to a firm called FACTS Management. When she was in kindergarten, I heard about it and decided to look into it further. They basically have a printing press for cash and then finding out what else was in the company, so yeah, I would say a good investment choice.