Microsoft Stock: Best Metaverse Game?

Shares of longtime tech titan Microsoft (MSFT) may actually be one of the pioneers in bringing the metaverse into the mainstream.

Indeed, the concept of metaverse remains abstract for many, especially non-gamers. Meta platforms (Facebook) has an ambitious vision for the future of the Metaverse, but it likely won’t be the only company flexing its muscles in the digital worlds of the future.

Arguably, Microsoft could face a smoother transition to the Metaverse when the time comes, given its incredible video game business (a major draw of the Metaverse) and other intriguing work-focused innovations.

It’s hard to get into enterprise software as a consumer business. We have seen this for many years. Apple (AAPL) has been unable to make a splash in the enterprise space despite its dominance on the consumer side.

With Microsoft Teams, Office, Windows, and a wide range of common workplace product offerings, it will be hard to dethrone the enterprise, even as we transition to a primetime-ready metaverse in the workplace. work. I am bullish on MSFT stocks.

Metavers: Work or play?

The game is likely to be synonymous with the metaverse, at least initially. On the work and play fronts, Microsoft is a force to be reckoned with, given its dominance of video games and enterprise software.

Although the HoloLens mixed reality headset isn’t a hit yet, I think investors can’t ignore Microsoft’s intentions with the metaverse. Additionally, future iterations of its HoloLens or similar product may prove successful once the world is finally ready for the Metaverse.

Even if Microsoft’s hardware doesn’t sell, it has software on its side. In terms of software for work and play, it’s really hard to compare with the company, which seems to be improving its metaverse outlook day by day.

Microsoft’s Activision Blizzard deal

Without a doubt, the acquisition of Activision Blizzard (ATVI) makes an already strong Xbox segment even stronger. The deal spawns successful brands including World of Warcraft, Overwatch, Diablo, Call of Duty and Candy Crush. There is no doubt that the massive size of the deal will leave Microsoft subject to regulatory scrutiny.

A juggernaut picking up a relative juggernaut in the gaming industry? Sounds like a deal destined to fail, right? Not so fast. Microsoft intends not to retire Activision Blizzard titles from other video game consoles.

Whether it keeps its promises or is forced to implement other measures to appease anti-trust regulators, I think Microsoft will walk the dotted line with its biggest video game acquisition yet.

Hit titles and a robust IP address could be what motivate gamers to buy a hardware device. How much will consumers be willing to pay? That’s the million dollar question.

For now, the Metaverse is likely to be a niche product aimed at gamers. In due course, casual gamers will take interest and employees will encourage their workplace to invest in VR or AR headsets for digital work environments.

Indeed, the potential of the metaverse is huge, but don’t go out and load digital real estate into the metaverse just yet, because it could be a slow and steady ramp up in the metaverse.

Also, we don’t yet know if augmented reality will come before fully virtual worlds. I think augmented reality is a stepping stone to virtual reality. In any case, Microsoft is very well placed to continue to challenge its old age with new avenues of growth.

The Taking of Wall Street

According to TipRanks, MSFT stock is looking like a strong buy. Out of 29 analyst ratings, there are 29 buy recommendations.

Microsoft’s average price target is $375.22, implying a 27.4% upside. Analyst price targets range from a low of $320 per share to a high of $425 per share.

Conclusion on Microsoft Stock

Microsoft still has its innovative edge, and investors should look no further than the name of the premium metaverse exposure.

Even better, if the metaverse isn’t ready for more than 10 years, MSFT’s stock is unlikely to fold significantly compared to meta-platforms, which rely on ads.

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