The rise of metaverse networks has the potential to reshape how people interact with each other in digital realms. While a number of companies large and small are investing heavily in the space, a number of existing companies could stand to profit from making a partial pivot into the space.
That includes existing media companies, but also hardware companies supplying the key tech to building out the metaverse.
One such player for this potential “Web 3.0” universe is a key builder of the current Internet and its earlier versions. That includes Cisco Systems (CSCO), a company that creates routers and switches necessary for online communication.
That’s because the metaverse will need to include improved hardware to process data visually for those plugging into a visual network.
Shares of the company have performed about in-line with the S&P 500 over the past year. With earnings up 37 percent, and the possibility for years of higher earnings in the next few years on a metaverse buildup, a multi-year rally may be underway in shares already.
Action to take: Investors may like shares here. The company pays a 2.6 percent dividend yield, and has a history of slightly increasing its dividend over time.
Traders might like the March $60 calls. They have a few months to play out, and last traded for around $1.20. On a further rally in shares, the option could deliver high double-digit returns or better.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.