The metaverse promises to be the next big technology. While the exact definition is hard to pinpoint, the core concept is simple enough: It will be a shared virtual world, blending aspects of social media, video games, and the broader internet. Moreover, it will allow people to engage with each other much like they do in the real world. Once inside the metaverse, consumers will be able to shop, travel, attend events, and experience almost anything.

To that end, a recent article from Bloomberg suggests that the metaverse could be an $800 billion market by 2024, but that's just a sliver of what this industry could ultimately achieve. Some analysts believe the metaverse will be a $30 trillion market in 10 years' time. Not surprisingly, many investors are looking for a way to cash in on this trend.

While there are many ways to accomplish that, buying a few shares of Unity Software (U 2.49%) and Globant (GLOB -2.35%) looks like a smart move. Here's why.

Person working on a computer.

Image source: Getty Images.

1. Unity Software

Unity is the leading platform for creating and operating interactive, real-time 3D content. Design professionals across a range of industries -- architecture, cinema, video games -- rely on Unity's software to create all manner of immersive graphics. And the real-time nature of that content means it can be visualized and edited simultaneously, expediting the development process.

While traditional development tools often required creators to recode content for different platforms, content built on Unity can be deployed across more than 20 platforms without making changes. That includes smartphones, computers, and game consoles, as well as augmented reality (AR) and virtual reality (VR) devices.

Not surprisingly, that value proposition has translated into strong revenue growth. And while Unity's GAAP net loss has widened over the past year, the company has a tremendous market opportunity and it makes sense to invest aggressively. Unity generated positive free cash flow of $34.2 million during the most recent quarter, meaning it's making enough money to pay the bills.

Metric

Q3 2020

Q3 2021

Change

Revenue (TTM)

$710.2 million

$1.0 billion

50%

Net income (TTM)

($249.4 million)

($454.5 million)

N/A

Data source: YCharts. TTM = trailing-12-months.

Of particular note, Unity is the most popular platform for creating content for AR/VR applications, two technologies that will likely blend into the metaverse in the coming years. Similarly, Unity holds a dominant position in the gaming industry, as 94 of the top 100 game development studios are Unity customers, and 71% of the top 1,000 mobile games were built with Unity's development engine.

Going forward, the company should be able to build on its strong competitive position, extending its lead in gaming and AR/VR to the metaverse, helping investors cash in on the multi-trillion industry. That's why this tech stock looks like a smart long-term investment.

2. Globant

Globant specializes in IT consulting and product engineering. The company employs over 20,500 professionals with expertise across a range of technologies, including AR/VR, media and entertainment, and digital experience. Globant uses that pool of talent to provide advisory and engineering services to its clientele, helping organizations achieve their digital transformation goals.

To that end, the company recently launched Metaverse Studio, a suite of tools designed to help clients take part in this emerging industry. Specifically, Metaverse Studio will integrate Globant's expertise in areas like blockchain, gaming, and digital media, enabling clients to tailor their business models to the metaverse, and create a compelling customer experience in a virtual world. Of course, the metaverse industry is in its nascent stages, but Globant has been successful in helping clients keep up with technology in the past.

Case in point: The International Data Corp. recognized Globant as a leader in customer experience improvement last year, and Globant has won many high-profile customers, including Electronic Arts and MercadoLibre.

Not surprisingly, the company has posted impressive financial results over the past year.

Metric

Q3 2020

Q3 2021

Change

Revenue (TTM)

$765.8 million

$1.2 billion

50%

Net income (TTM)

$49.0 million

$85.9 million

75%

Data source: YCharts. TTM = trailing-12-months.

Looking ahead, management puts its market opportunity at $154 billion in 2022, and Globant's value proposition should only become more relevant in the years ahead, as digital transformation continues to gain momentum.

More importantly, the company has strategically positioned itself to capitalize on the metaverse, an industry that could quite literally reshape the world. So, while Globant may not be the first idea that comes to mind when you consider metaverse stocks, I think this under-the-radar company (and its shareholders) will benefit from the multi-trillion-dollar industry.