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According to a research report released Monday by Loop Capital Markets, Best Buy could benefit as more customers and businesses enter the metaverse.
According to CEO Anthony Chukumba, the consumer electronics company might witness a “huge PC upgrade cycle”. As well as an increase in sales of virtual reality headsets, microphones, and other equipment.
“If businesses and consumers become more interested in the metaverse, Best Buy might benefit by selling more virtual reality headsets and more expensive laptops”.
According to a research note published Monday by Loop Capital Markets, the consumer electronics company is ideally positioned to profit on the interest in non-fungible tokens, gaming, and virtual socializing. As per Anthony Chukumba, managing director at the equities research firm, Best Buy is the nation’s largest PC retailer, has big-box locations where buyers can try out different headsets, and has a team of technology specialists on hand to help people get set up.
He restated his Buy rating on Loop and set a price target of $150. Which is approximately 52% higher than Best Buy’s current pricing. As of midday Monday, Best Buy shares were up nearly 1%. They have dropped by around 9% in the last year.
From Nike to Ralph Lauren, a rising number of retailers have dipped their toes into the metaverse. In December, Nike paid an unknown sum for the virtual footwear business RTFKT. Ralph Lauren has been experimenting with ways for users to visit and purchase items from virtual storefronts on gaming platforms such as Roblox and Zepeto.
Meta now incorporates 3D avatars into Instagram stories, Facebook posts, and Messenger.
Chukumba explained that the financial opportunity for Best Buy is much simpler; Customers may need to upgrade their computers to higher-resolution screens as well as purchase extra equipment. According to him, this might result in a “huge PC upgrade cycle” as well as another for cellphones.
Best Buy also has physical locations where customers may try on and compare different headsets. Another component of the metaverse, according to Chukumba, might potentially benefit Best Buy. The technology could enable speedier and less expensive warehouse simulations, instilling more efficient ways of working.