Facebook is going all-in on the metaverse.
The company rebranded last week as Meta as it looks to build out the virtual universe and further incorporate virtual and augmented reality with social media. The metaverse is not a new concept, but it is one gaining traction with a wider audience.
CNBC's "Trading Nation" asked its traders for the stocks, outside of Meta, that could benefit from the development of this online world.
Todd Gordon, founder of Inside Edge Capital Management, highlighted Matterport, a nearly $6 billion company that specializes in 3D capturing for industries such as real estate.
"The margins will be good. It's a subscription-based model. Half of the revenues this year come from the subscriptions with the iOS and the Galaxy app. Management says by 2025 80% of the revenues will come from the subscription," Gordon said Tuesday.
Matterport is expected to generate $118.4 million in revenue this year, according to FactSet. That should rise by nearly 56% in 2022.
"They have a big first-mover advantage. They've got almost 6 million digitized scans of buildings and infrastructures which is supposed to be 100 times the nearest competitor," Gordon added.
Eva Ados, chief investment strategist at ERShares, is looking to the chips space for her pick.
"We like Nvidia for many reasons. The metaverse is one additional reason. In fact, we think Nvidia will be the next trillion-dollar [stock] after Tesla," Ados said during the same interview, referring to Tesla's recent move above a $1 trillion market-cap milestone. Nvidia has a $660 billion market cap.
"The infrastructure is key to the metaverse. Many companies will build it, but most of the revenues will be generated by the companies that provide the infrastructure and that's where Nvidia comes in because they're already a leader in artificial intelligence, semiconductor space. Their chips and computer power are key to the metaverse," she said.
"I also like Roblox," she said. "Most of the innovation will come from gaming. Roblox already has metaverse-like experiences. It's a company that's growing the most when it comes to the gaming industry – 117% growth, that's 10 times the industry average."
The online gaming company has been stuck in a trading range since the beginning of summer. It still trades well above its March direct-listing reference price of $45. It closed Tuesday above $79.
Disclosure: ERShares holds RBLX and NVDA.