1 Metaverse Stock That Could Make You Richer

Unity Software (U -1.61%) helps creators build real-time, interactive 2D and 3D content. Its platform has seen adoption across several industries, from architecture and manufacturing to filmmaking and video games. But Unity does more than content creation. It also provides tools that help developers optimize game performance, drive user engagement, and monetize applications with in-app purchases and digital ads. That comprehensive approach has made Unity the leading game development engine.

Likewise, Unity is also the leading platform for creating augmented reality and virtual reality content, two technologies that should becoming increasingly relevant as they  blend into the metaverse. In this Backstage Pass video, which was recorded on Nov. 29, Motley Fool contributors Danny Vena and Trevor Jennewine discuss Unity, highlighting a few reasons that this stock is worth owning.

Danny Vena: I think with all the buzz that's going on about the metaverse, it could be a really lucrative opportunity or it could be a lot of sizzle and no flash. But I guess that's something that we're going to have to watch develop overtime. The thing that I think is really interesting is if you find some of these companies that are involved in the metaverse, like Unity Software. I was shocked at the sheer dominance they have in their industry. Unity had, what was the percentage that you quoted?

Trevor Jennewine: Seventy-one percent of the top 1,000 mobile games.

Vena: I mean, that's ridiculous. Ninety-four of the largest 100 gaming studios use Unity. I mean, to me, those two metrics right there paint a compelling picture for why you might be interested in investing in Unity Software. Then the fact that you can use those same tools for outside of gaming and outside of whatever the potential is for the metaverse, but in things like architecture and films and design work. The fact that you can develop these things, these 3D models in real time and tweak them before you try to actually create the product for the first time in real life, is a really interesting application and there are other potential softwares out there that you can use. Things like Autodesk that you mentioned earlier that you can create these. But I think the fact that they're expanding their ecosystem and expanding their market opportunities is a pretty compelling idea as well.

Jennewine: Right. I'm glad you defined the metaverse there. Whenever I think about the metaverse I think of the book and the movie Ready Player One, like you said, just this digital world. Maybe essentially like social media on steroids the place where you can log in and interact. It can mirror the real world, or it can be completely fictional, or a collage of the two. I wouldn't invest in Unity just for that metaverse thesis. We might be two decades or more away from seeing a real metaverse. I think that's the icing on top, like Danny pointed out, they have a tremendous foothold in the gaming industry, they're making moves into other industries like architecture, auto manufacturing, filmmaking. They have a strong position in virtual on augmented reality. And I think, as a whole, I like the company as an investment. Not just because of the metaverse angle, although that is interesting.