(Coindesk) Morgan Stanley has singled Facebook as the stock to benefit the most from the metaverse endeavors, which the bank says is an $8 trillion market in the US.
Morgan Stanley says that out of the $8 trillion addressable market in the US, about $5 trillion of consumer spending can be digitized faster via immersive experiences.
The bank’s strategist Brian Nowak, who maintains an overweight rating on Facebook, says the social media giant’s metaverse ambitions add a layer of multi-year monetization that will position the stock to gain.
Nowak has also overweighed Roblox, Alphabet, Snap and assigned an equal weight on Unity Software due to the exposure to the metaverse.
The strategist still cautions that metaverse exploits would take time to materialize since e-commerce and digital media platforms are always evolving.
The bank says metaverse could spur growth in digital payments but sees it as a small opportunity that can occur in the longer term. Regulatory hurdles could also pose a challenge to the growth in metaverse-aided digital payments.
Americans spend up to 11 billion days per year on digital media, which Morgan Stanley expects to be converted into metaverse hours opportunity.
FB: NASDAQ is up +1.76%.
