Elon Musk isn't a fan of the metaverse. He told satirical website The Babylon Bee last week that he's "currently unable to see a compelling metaverse situation."
What does the Tesla and SpaceX CEO dislike about the metaverse? Pretty much everything. He criticized virtual reality (VR) headsets, calling it "putting a TV on your nose." He questioned the premise that people would want to spend a lot of time in the metaverse. Overall, he blasted the entire concept as "buzzwordy."
Musk is an undeniable technology visionary. He's the world's richest man. But he could be wrong, in this case. If so, here's how you can make more money from the metaverse than Musk will.
See what could be
There's an advantage that ordinary investors can have over Musk. The billionaire hinted at it himself in his interview with The Babylon Bee. Musk said that he's "unable to see" how the metaverse could be a game-changer. You could gain more wealth from the metaverse than he will by having the vision that he doesn't.
Musk made some valid criticisms of the VR headsets that are available currently. But what's in use today won't be nearly as good as what's on the way. Expect bulky headsets to be replaced by lightweight versions and even eyeglasses. Also look for additional devices such as haptic gloves that make the virtual metaverse world feel more lifelike.
What about Musk's take that people won't spend a lot of time in the metaverse? Perhaps he's right. However, it seems likely that avid gamers will prove him wrong. The big question is whether or not the metaverse will attract non-gamers. The answer probably depends on the apps that are developed.
The ability to virtually teleport anywhere to spend time with anyone could be widely popular. Millions of people might enjoy playing sports, attending concerts, or just hanging out with friends in another city.
Shopping in the metaverse could be much more appealing to many shoppers than scrolling through items on a browser. Picture a virtual mall where you can pick up products and even try on clothes that can be delivered to you in the real world after being purchased in the metaverse.
Because the metaverse is virtual, the opportunities go way beyond merely replicating what can be done in the physical world. Maybe you and your friend could play with your favorite rock band in front of thousands of screaming fans instead of only attending a concert. Perhaps you and your buddy could play golf on the surface of Mars. And that's just a couple of ideas for what the metaverse could make possible.
Stocks you can buy that Musk probably won't
It's fair to say that Musk probably isn't going to invest in metaverse stocks. A person without a vision won't take action. But for those who do have a vision for what the metaverse could become, there are several stocks to buy that should be huge winners over time.
Perhaps the most obvious choice is Meta Platforms (META -1.06%). Meta, formerly known as Facebook, is already a top virtual reality stock thanks to its popular Oculus headsets. The company has painted the clearest picture of what the metaverse could be. It's also investing billions of dollars to make the metaverse a reality.
Nvidia (NVDA -0.46%) is already making money from the metaverse. Major companies are using Nvidia's Omniverse platform to create 3D simulations of factories and collaborate virtually. Demand for Nvidia's graphics chips should also skyrocket as the metaverse gains adoption.
Big tech companies aren't the only players that will build the metaverse. Thousands of artists and software developers will need the tools to flesh out the virtual world. Unity Software (U -1.18%) plans to be the leading provider of those tools.
None of these three companies have to wait for the metaverse to be successful, though. Meta is highly profitable with its social media platforms. Nvidia currently generates billions of dollars each year with its graphics chips powering games, artificial intelligence apps, and more. Unity's software is used to develop many of the world's most popular video games.
Musk's waffle word
There's no guarantee that you'll make more money on the metaverse than Musk will. Maybe his skepticism will prove to be right.
However, quite a few major investors are betting that he's wrong. Cathie Wood, for example, thinks the metaverse is a multitrillion-dollar opportunity that could change every sector of the economy.
Perhaps the most likely way that Musk could be a bigger winner with the metaverse than you is if he changes his mind. The billionaire used an important waffle word in his comments to The Babylon Bee, stating that he doesn't see the value of the metaverse yet.
Musk had a vision of what the internet could become before most did. He saw the opportunity for electric vehicles earlier than many. He understood that private companies could revolutionize space travel in a way that few others did. Musk might be behind the curve with "getting" the metaverse right now. But don't discount the possibility that he'll jump aboard the metaverse bandwagon in the not-too-distant future.