Better Metaverse Stock: Roblox vs. Unity Software

There are many ways that investors can benefit from the metaverse, a new technology that aims to connect people all over the World into a third world.

Roblox (RBLX -6.88%) a Unity system (U -8.60%) Two groups that can help make the metaverse more real. Roblox provides a platform for developers to create, print, and create 3D visuals, and users can process that information in a variety of ways. Unity Software, on the other hand, allows developers, engineers, artists, engineers, designers, and architects to create 3D visuals in real time.

In simple words, Roblox and Unity Software are pick-a-shovel games in the metaverse while they are in the business of creating 3D visuals such as virtual worlds and digital twins. Which of these two metaverse values ​​are you buying right now? Let’s see.

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The case for Roblox

The introduction of 3D virtual worlds is finishing well in Roblox. The business is stable by 2021 with revenue growth of 108% to $ 1.9 billion and daily active users jumping 40% to 45.5 million. What’s more, the daily user base jumped to 55 million in February, up 28% annually.

It’s also worth noting that Roblox users spent 41.4 billion hours on its site last year, a 35% increase over the previous year. The database of health and fitness users explains why big names from player David Guetta to the NFL use his platform to build their metaverse front.

However, the company’s virtual currency, called Robux, is very popular. Users can purchase Robux to upgrade their avatars to virtual worlds, using the virtual money to purchase in -game items that can range from costumes to accessories. useful even to animals. Roblox users spent $ 2.7 billion last year to buy Robux, which is seen in most of the company’s books.

In all, Roblox’s ecosystem of 29 million developers, 11 million virtual experiences, a large user base, and a popular virtual currency will make it an ideal platform for brands looking to create a symbol in the metaverse. Nike, for example, has previously created a virtual world in Roblox. Other brands include Forever 21, Vans, and Ralph Lauren also hit Roblox to enter the metaverse.

The metaverse expects to record annual growth of 47% by 2029, according to the third page. Therefore, as more users enter the metaverse, new companies will be encouraged to make the leap into the virtual world and expand Roblox’s addressable marketplace. This explains why analysts believe Roblox will capture significant growth.

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The case for Unity Software

Unity Software is known for its Unity video game engine, which is used by developers to create games that work across multiple platforms such as computers, consoles, and mobile. Unity is leveraging its video game experience in the metaverse by focusing on creating real -time 3D visuals for a variety of industries from retail to garage to production. digital twins, and so on.

The good part is that the industry has a non -gaming experience, indicating that it is likely to benefit from the metaverse. Unity reports a 70% increase in its non -gaming revenue by 2021. Unity management said at a corporate conference in February that the non -gaming industry accounts for 25% of its $ 326 million. the revenue generated by the “create solutions” section at. 2021. For comparison, the non -gaming industry will account for 20% of the district’s revenue by 2020.

Large companies are using Unity solutions to create digital twins – virtual 3D representations of real -life creatures. South Korean giant Hyundai Motors, for example, has teamed up with Unity to create a digital twin of a real factory that will use its efforts to improve plant management, increase productivity, and bring new features to the work process. Right away, eBay It uses Unity solutions to help “customers see what they really are offering with our proprietary 360-view interactive.”

Several other companies contacted Unity Management on the company’s latest fundraising conference call, showing how its 3D rendering solutions are being used in a variety of industries. Capturing Unity solutions will become more robust as the metaverse is expected to increase demand for digital twinning and other 3D applications. The digital twin market, for example, is expected to reach $ 48 billion in revenue by 2026 compared to $ 3 billion by 2020.

So Unity Software has a lot of room to increase its revenue. The company raised $ 1.1 billion last year, up 44% from 2020. It expects to continue its tenure into 2022 as well, with revenue expected to increase by 35% in the medium term. his lead time is nearly $ 1.5 billion. What’s more, analysts are more optimistic about the long -term prospects of the industry because they expect earnings to grow at an annual rate of 69% over the next five years.

But who is the best metaverse stock?

Roblox and Unity are growing at a good pace and are seen as a way to benefit the metaverse. However, with a retail price of 11.1, Roblox is the more affordable option for investors. Unity Software is more expensive by 23 times sales, even though it recorded slow growth last year.

Therefore, investors looking for an easy metaverse market may want to take a closer look at Roblox given its combination of good value and rapid growth.

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