One Analyst Says Best Buy Could Make Money From the Rise of the Metaverse

According to an analyst at Loop Capital Markets, Best Buy could cash in from rise of the metaverse.

The electronics retailer could be a beneficiary as more consumers and companies dive into the metaverse, according to a research note from Managing Director Anthony Chukumba.

The consumer electronics retailer could see a “massive PC upgrade cycle” and a jump in sales of virtual reality headsets, microphones and other equipment, said Chukumba.

The equity research firm based its views on a conversation with an unnamed CEO and venture capitalist who specializes in NFTs, blockchain, decentralized finance, gaming and the metaverse.
Chukumba believes as companies and consumers grow more interested in the metaverse, Best Buy could cash in by selling more virtual reality headsets and pricier computers.

Best Buy is the largest PC retailer in the country, has big-box stores where shoppers can try on different headsets and has a team of tech experts who charge for helping consumers with setup, said Chukumba.

“Consumers may need to upgrade computers to higher-resolution displays and buy extra equipment from monitors to microphones. That could drive a “massive PC upgrade cycle” and one for smartphones, too,” said the analyst.

Another aspect of the metaverse could help Best Buy, too, Chukumba said. The technology could make it quicker and cheaper to run warehouse simulations that inspire more efficient ways to operate.

The analyst has reiterated the firm’s “buy” rating and a price target of $150, roughly 50% higher than where Best Buy is currently trading.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.