Investing in the Future: Virtual Reality Stocks to Watch in 2021
The world of virtual reality is rapidly expanding. This technology has been in the works for decades, and now we are finally seeing it come to life. Virtual reality has become a popular option in gaming and entertainment, with companies such as Sony, HTC, and Facebook making significant investments in this area. However, virtual reality has also gained momentum in other sectors such as healthcare, education, and real estate. All of this makes investing in virtual reality stocks a smart choice for investors looking for promising opportunities in 2021. In this article, we will explore some of the best virtual reality stocks to watch this year.
What Is Virtual Reality?
Virtual reality is a technology that takes users into a completely self-contained world that is created through computer software and hardware. In other words, it simulates an environment that seems real to the user. Virtual reality has several applications in various industries, including education, entertainment, healthcare, real estate, and e-commerce.
The Growth of Virtual Reality
The virtual reality market is expected to reach $19.6 billion by 2025, according to MarketsandMarkets. The major drivers of this growth are the increasing demand for virtual reality in gaming and entertainment, the growing availability of VR headsets, and the rising demand for virtual reality in healthcare and education. With such a positive outlook, investing in virtual reality stocks is an excellent opportunity for investors looking for futuristic technologies to invest in.
The Best Virtual Reality Stocks to Watch in 2021
1. Facebook (FB)
Facebook is one of the largest tech companies in the world and has made significant investments in virtual reality. In 2014, Facebook acquired Oculus VR, a virtual reality hardware and software company, for $2 billion. Oculus has since gone on to launch several virtual reality products, such as the Oculus Rift S and the Oculus Quest 2. Facebook has also integrated virtual reality features in its other services, such as Messenger Rooms and Oculus Venues. Analysts predict that Facebook’s investment in virtual reality will pay off in the long run, making it a potential buy for investors.
2. Sony Corporation (SNE)
Sony is a giant in the entertainment industry, and its investment in virtual reality has been significant. Sony launched the PlayStation VR in 2016, which quickly became a popular VR headset, with over five million units sold to date. Sony’s expertise in the gaming industry and investment in virtual reality technology make it a solid investment choice.
3. NVIDIA Corporation (NVDA)
NVIDIA is a leading manufacturer of graphics-processing units (GPUs), which are vital components for virtual reality technology. In addition to GPUs, NVIDIA has also developed virtual reality software, such as VRWorks, which helps developers create high-quality VR experiences. With the rising demand for virtual reality technology in gaming and other industries, NVIDIA’s investment in this area makes it a promising company to invest in.
4. Alphabet Inc. (GOOGL)
Alphabet, the parent company of Google, has invested in virtual reality technology through its subsidiary, Google VR. Google’s investment in VR has been mostly in software, with companies such as Tilt Brush, a VR painting application, and Google Earth VR, an immersive experience of the world’s most beautiful destinations. Google’s virtual reality efforts have been focused mostly on education and entertainment. However, analysts predict that Google is gearing up for more significant investments in the technology, making Alphabet a promising choice for investors.
Final Thoughts
Virtual reality is an exciting technology that is changing the way we perceive the world around us. As the demand for VR continues to increase, investing in virtual reality stocks is a smart choice for investors looking for long-term growth. Facebook, Sony, NVIDIA, and Alphabet are some of the best virtual reality stocks to watch in 2021. By investing in these companies, investors can capitalize on the growth of virtual reality and reap potential benefits in the future.
