Over the past few years, AR/VR technology has exploded beyond our wildest imaginations. It has expanded far beyond its roots in the entertainment industry, with tech companies actively exploring what is possible with this new technology. It can enhance education and help patients with disabilities or psychological trauma. In addition, the way it is being used in other areas such as brand management, product design, and real estate shows how quickly technology is advancing and changing our society.
The potential for companies focused on creating cool AR/VR experiences is immense, as it is predicted to be a trillion-dollar industry by 2030. So investing in AR/VR stocks could be very profitable for early investors. Meta already dominates the space, capturing 90% of the market, but its dominance won't last much longer.
Source: Digital Information World
With Apple set to launch its impressive Apple Vision Pro AR/VR headset in 2024, investors are anticipating the potential impact it could have on the industry. If Apple gets it right, it could be the device that cuts into Meta's market share and puts Apple on the map as one of the companies to watch in the AR VR space.
Meta's AR/VR Strategy
Meta's commitment to the metaverse and AR/VR so far makes it one of the best metaverse stocks to invest in right now, but the company's roadmap for the future of AR and VR is even more promising.
It plans to release its first pair of smart glasses in 2025. In 2027, the company will continue to build on its momentum by releasing its first pair of full-fledged AR glasses, which Mark Zuckerberg believes will be as popular as the cell phones we carry with us every day. And they don't plan on stopping there.
The Meta Quest 3 features a much slimmer design than the Quest 2 and promises better performance, higher resolution, and groundbreaking Meta Reality technology. It will cost about the same as Quest 2 when it was first released. The slight upside is that the price of the Quest 2 will drop by almost half when its successor is released. After its recent financial troubles, Meta is counting on Quest 3 to be its shining success, building on the achievements of its predecessor.
Source: Android Central
With its recent acquisitions, Meta is also sending a clear message to other developers that it is here to stay. Of the 17 startups the company has acquired since November 2019, 9 have been VR studios, and it is still buying out any smaller studio that might be a competition in the future.
Apple's AR/VR Strategy
Apple hasn't had much impact on the growth of the AR/VR market, but Apple's plans for the metaverse are extensive, starting with the release of a few key products. First up will be the Apple Vision Pro, arguably the company's most high-profile hardware product to date. Apple mixed reality rumors have been circulating for years, but were finally confirmed during a demo event in June. The headset allows you to take 3D videos and photos, and syncs with the iPhone, so you can use your phone while wearing the headset. It is said to cost around $3,000 when it hits the market and is expected to be released in early 2024.
Source: Tom's Guide
Although Apple is hardly a first mover, it could use its years of experience and market share in other device segments to gain an edge over Meta and other companies. Apple has already succeeded in creating an ecosystem, and its AR/VR headset will fit seamlessly into that ecosystem, allowing you to use as many apps as you want from your phone without taking off the headset.
Market Performance and Growth Potential
How Meta Stock is Doing
Meta stock bottomed out last November at around $88 after plummeting nearly 80% in 14 months, and the company hasn't seen any significant revenue growth. But things started to change when Meta announced its first round of job cuts. After the second round of job cuts in March, Meta's stock price rebounded and has risen as much as 132.55% over the past 6 months. However, since the beginning of the year to date, Meta stock has gained 157.30%, mainly due to positive investor sentiment about the company's cost-cutting efforts.
After the social media giant announced the launch of Threads as a competitor to Twitter, Wall Street analysts upgraded their outlooks, estimating that Meta could reach another $150 billion in market valuation despite the new platform's lack of revenue.
So, is Meta stock a buy? At its current price of $316.01, the Meta stock analysis ranks the stock as a Strong Buy with a high and low estimate of $400 and $100, respectively, by the end of the year.
How Apple Stock is Doing
At $195.10, Apple's stock price is largely justified by the company's success in recent years. As a tech company, Apple has one of the most impressive growth histories, combined with high-quality product releases and an ever-expanding range of services. With the upcoming release of its mixed reality headset and other products through 2030, Apple stock has plenty of room to grow as investors are confident in its potential as a virtual reality stock.
Apple's stock has risen nearly 400% since 2016, the most growth of any tech company to date. This year alone, the stock is up 49.75% and only fell 27% during the economic downturn in 2022, which was the lowest among its peers like Microsoft, Alphabet, and Meta.
Investors are confident in the reliability and relative stability of the stock, with Apple stock analysis results rating it as a strong hold. It is predicted to rise as high as $240 this year, with a low estimate of $140, and could be one of the most valuable augmented reality stocks following the release of Apple's AR headset.
Meta vs. Apple: Who has the Competitive advantage
Despite being the first, Meta now has to compete with Apple as the tech company prepares to release its Vision Pro mixed reality headset. While Apple's entry into the space validates Meta's position for more AR/VR investment opportunities, Apple's presence could significantly reduce Meta's market share.
In terms of hardware, neither company is close to having the lightweight mixed reality glasses that could determine who becomes the leader of the AR/VR industry. Although Meta has been in the industry longer, the company has focused more on developing its software, and that has become the differentiating factor between the two companies. In terms of software, Meta transports users into a sort of cartoonish metaverse, while Apple's Vision Pro integrates technology into the user's space.
Also, the $3,000 price tag for the Vision Pro may give Meta a chance to attract more customers because of the lower price point of the Quest headsets.
Source: TechRKiVe
Industry Positioning
The risks associated with investing in Apple may be significantly lower than in Meta. Meta is still growing, but its growth is relatively slow. Although its Q1 earnings surprised investors positively, there are still many doubts about whether Meta can accelerate or at least sustain this growth. Meta's advertising capabilities are still trying to improve after Apple kneecapped its business in 2021 with new privacy policies. In addition, Meta is burning billions on its Reality Labs, widening its operating loss to $13.2 billion.
Still, you have to consider Meta's reach. With platforms like Facebook, Instagram, and WhatsApp, Meta reaches 3.81 billion people monthly, and that reach could easily accelerate its growth again. Also, its investments in the metaverse could eventually pay off and drive growth.
Apple, on the other hand, has a much broader product portfolio and enjoys impressive customer loyalty and a strong brand image; the tech giant has proven countless times that it can still deliver market-beating returns. However, Apple's growth is still heavily dependent on the iPhone. For fiscal 2023, analysts expect the company's revenue and EPS to decline slightly by 3% and 2%, respectively, due to the projected decline in iPhone sales for the year and the overall decline in the global smartphone market. But Apple has been pulling out all the stops to beat Wall Street's predictions with better-than-expected Q2 2023 earnings and improved iPhone sales.
What to Consider Before Investing in AR Stock Meta vs. Apple
Before you invest in AR Stock or VR stock either Apple or Meta, you should consider these factors:
1. Risk Factors
Investing in VR/AR is attractive because of its application and potential impact on various industries. However, investors need to keep in mind that it may take some time for the technology to take off. The hardware and software components of AR/VR still need a lot of development and the cost also needs to be reduced for it to become a mass-market product.
2. Meta's financial position
Meta may be struggling to improve its revenues, but overall, the company's financial position is still relatively stable. Meta has $37.44 billion in cash and cash equivalents and $185 billion in total assets. At $59.7 billion, the company's total assets are quite high, but do not pose a risk to the company because of its assets.
3. Apple's financial position
Apple's ability to manage its finances is one of the key reasons why it is regarded as one of the most valuable companies in the world. Apple has $55.8 billion in cash and cash equivalents and an impressive $332.1 billion in total assets. Its total liabilities are quite high at $270 billion, but this is easily offset by its assets.
Meta vs. Apple: Who has the Upper hand
Now for the elephant in the room: Should I invest in Apple stock or Meta stock?
Source: Indian Abroad News
Right now, Apple looks like a much better investment than Meta. Apple's ROE is 175.46% compared to Meta's 22.40%, which means Apple is more profitable. In addition, there may be less risk in investing in Apple than in Meta because Meta relies on advertising for its revenue. For example, it was reported that 98% of Meta's revenue will come from advertising by the end of 2022. Apple's brand value is also higher than Meta's. However, Apple's valuation is at a premium compared to Meta. There are several reasons for this, including a diversified product portfolio that makes Apple more financially viable.
Strategies for trading META Stock or AAPL Stock
Trading stocks can be risky and challenging because of the nature of the stock market. To succeed in such an environment, you need to have some tools and strategies in your arsenal that can increase your profit potential and push you closer to your goal. The most popular strategies for trading Meta or Apple stock are:
1. Swing trading:
Swing trading is massively popular among stock traders because it allows for quick profits from short-term price movements. Some swing traders tend to leave their positions open for days, while others may hold their positions for weeks. Once the stock price reaches the profit target, traders immediately sell their position and repeat the process. Although swing trading is effective when done correctly, it requires a lot of discipline along with trial and error because of the short time frame.
Source: Entrepreneur
2. Day Trading:
Day trading is another short-term technique where stocks are bought and sold within the same trading day. A major advantage of day trading is that it can be used by individual investors from the comfort of their homes as well as institutional traders.
There is no overnight risk because day traders close all positions at the end of the day, and there is also a high potential for profit.
3. CFD trading:
CFD or Contract for Difference, is a strategy that allows you to profit from the price movement of Apple or Meta stock without having to own the asset directly. CFD trading is popular because it allows you to trade both rising and falling prices in the stock market, making a profit on the difference between the opening and closing price of the stock. In addition, you can easily use your CFD trades to hedge an existing investment portfolio and protect it from risk.
Trade Meta Stock or Apple Stock CFD with VSTAR
When you trade Meta Stock or Apple Stock CFD with VSTAR, you are simply speculating on the price movement without having to buy the stock itself. CFD trading also gives you leverage of up to 1:200. This allows you to increase your position and profit potential beyond your initial deposit and take advantage of market opportunities.
To trade Meta Stock or Apple stock CFD at VSTAR, all you need to do is:
- Download the app or click Register Now on the website
- Provide your email/phone number and password
- Complete the verification process
And you are ready to trade!
Conclusion
Both Meta and Apple are striving to provide the best AR/VR experience for their customers, and now that the Apple Vision rumors have been confirmed, it will be a solid contender for Meta's position in the space. As Apple and Meta battle to dominate the metaverse, it's important to take some time to consider which company has the upper hand and how it can benefit you.
Meta stock's incredible run so far has made it one of the biggest movers this year, outperforming even Apple and arguably one of the best stocks to buy for 2023. However, you can never be too sure.
The continued success of both Apple and Meta depends on the success of their products and their ability to manage macroeconomic risks. We still don't know how Apple's Vision Pro will be received by the general public when it is released, and there are still some doubts about the Metaverse as a whole since it is still new.
But if investments in AR/VR do pay off, the impact will be long-lasting and could lead to novel developments in various sectors of society.
