The Metaverse Could Add $25 Per Share to This Stock Price. No, It’s Not META.

By TradeSmith Editorial Staff

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Before you could find a company’s phone number with just a click of a mouse or by saying, “Hey Siri,” the Yellow Pages was the go-to source to find a business’s phone number.

At some point, a few savvy people realized that when launching a company, they could add “AA” or “AAA” or “AA1” at the start of their business name or rename their business to appear first in the directory.

There weren’t any reviews or much else to know about the companies, so appearing first was a huge competitive advantage because people would just call one of the first numbers they found.

Well, Mark Zuckerberg adapted this old Yellow Pages trick for the internet age when he changed the name of Facebook to Meta Platforms Inc. (META).

If you Google “the metaverse,” Meta Platforms Inc. has a prime spot as one of the top five links that aren’t paid ads.


This is all strategic, as Zuckerberg is trying to brand his company as a leader in an opportunity that is even bigger than social media.

In a recent report from consulting firm McKinsey & Co., it was projected that the metaverse would be worth $5 trillion by 2030. To put that in perspective, that’s nearly 40 times more than the 2021 revenue of Meta Platforms Inc., Twitter Inc. (TWTR), and Snap Inc. (SNAP) combined.

Again, being on the first page of a search engine for “the metaverse” gives Zuckerberg a competitive advantage as the idea becomes more popular and people want to know how to jump into this new world.

While I’m still pounding the table on owning companies with moats and income-generating dividend stocks, I said in January that the metaverse could easily serve as the next big igniter for tech stocks.

And that brings me to an important point: Just because Zuckerberg changed his company’s stock ticker to META, it doesn’t mean that he owns the metaverse.

Going back to January, I shared three ways to invest in the metaverse that didn’t involve Facebook at all, because the metaverse opens the door to all sorts of new opportunities — many of which haven’t even been imagined yet.

Today, I want to share another company that isn’t as blatant with its plans in the metaverse as Meta Platforms Inc., but its success in the space could add $25 per share to its stock by 2026.


Investing Accordingly

When asked about the metaverse in an earnings call in January, Apple Inc. (AAPL) CEO Tim Cook was careful to tiptoe around the word “metaverse.”

Cook said that Apple sees “a lot of potential” in the space and is “investing accordingly.”

While that may sound like a restrained response, Apple is a company that likes to do its own branding. In addition, Cook and Zuckerberg have a history of trading barbs about each other’s business practices, so Cook doesn’t want to come out and sound like he’s providing endorsements for Zuckerberg’s plans.

So while it may seem Apple is quiet about this new space, actions speak louder than words.

In Neal Stephenson’s novel “Snow Crash” (which gave us the term “metaverse”), the metaverse was envisioned as a parallel environment to the internet, where people use avatars to engage one another.

While it doesn’t fully exist yet, the metaverse, at least for now, is conceptually a shared virtual environment that is immersive and interactive. As a 3D virtual space, it is boundless, with zero limits on the number of people who can engage.

And Apple will be a part of getting people seamlessly into those worlds with its mixed-reality headsets.

“Mixed reality” refers to the headsets’ ability to offer both augmented reality and virtual reality experiences. Cook announced that the Apple headset will be on store shelves as early as the second quarter of 2023.

Shanghai’s Covid-related lockdowns pushed back original delivery plans, but Apple’s commitment to leveraging its already powerful platform and extending it to the metaverse is evident.

Igor Tishin, an analyst at global asset management firm Harding Loevner, shared in a November 2021 LiveWire interview that he projected that the added value from the metaverse to Apple stock could be $25 per share by 2026.

Granted, a lot has happened since then, and the metaverse is still in the early stages of being built, but that added value to the stock price is an example of what I mean about this new world being an igniter for tech stocks.

We have a picture of what could happen for Apple in the future, so let’s take a look at what is happening now.


Apple under the TradeSmith Microscope

AAPL was in the Green Zone to start the year, but like all tech companies, it has suffered a long, slow ride down from there due to inflation, fears of a recession, and rate hikes.

AAPL slipped into the “wait and see” Yellow Zone on May 9, and entered a solid downtrend just 10 days later. Last Monday, June 13, the downtrend triggered a stop-out alert as AAPL fell into the Red Zone.


It’s been a relatively stable stock, however, with a medium-risk Volatility Quotient (VQ) of 27.08%. And it is just about to exit a valley, according to our timing algorithms, suggesting bullish potential.

We’re going to let our system tell us exactly when to do the buying, but now that you have the knowledge of how much value the metaverse can bring to Apple shareholders, you can get ahead of the game and be ready to pounce.