Morgan Stanley believes Facebook is the best stock to get exposure to the Metaverse

The metaverse area has received massive attention from investors. Morgan Stanley believes Facebook (now known as Meta) is the best stock to get involved in the emerging sector.

The cryptocurrency space has seen numerous trends over the past few years. From the rise of Initial Coin Offerings (ICOs) to the recent emergence of the decentralized finance (DeFi) and non-fungible tokens (NFT) sectors.

The latest trend is Metaverse, which has garnered massive attention since social media giant Facebook changed its name to Meta. According to leading investment bank Morgan Stanley, Facebook is the best stock to get involved in the Metaverse.

Leading equity analyst Brian Nowak’s report pointed out that Meta is the most obvious way to invest in this space. The Morgan Stanley analyst said any success the company made in building and monetizing the metaverse would be an asset and will continue to grow Facebook in the years to come.

Aside from Facebook, the analyst added that he prefers a few other companies to get involved in the Metaverse space. These companies include Roblox, Alphabet, Snap (overweight), and Unity Software. The report added:

“American users already spend the total equivalent of 11 billion days per year consuming digital media, which are considered metaverse hours to be recorded.”

Morgan Stanley believes the Metaverse space has a lot of potential, but the revenue opportunities in this sector would be smaller and would last over the long term. The analyst emphasized:

“The biggest challenge here is that the uncertain long-term regulatory environment surrounding crypto creates more uncertainty about how great this monetization opportunity could be.”

Facebook remains the biggest player in the Metaverse space and is expected to take massive strides in the software and hardware areas of the industry. Some crypto-focused protocols, including Sandbox and Decentraland, have also rallied massively thanks to the increased adoption of the metaverse.