Augmented reality (AR) shows incredible potential from a long-term perspective. But until now, many investors curbed their expectations and enthusiasm regarding the technology. It’s hard to be enthused when the only AR your average person has been exposed to are localized ads augmented on the boards in televised hockey games.
Sure, cute social media filters are another application that makes good use of AR tech. But I’m sure AR hasn’t lived up to its full potential quite yet. However, that could change in less than a month as Apple (NASDAQ:AAPL) releases its first-ever spatial computer in the Vision Pro, marking a massive splash in the realm of AR.
Expectations for Vision Pro and the potential of next-generation AR remain quite muted ahead of Apple’s big day. Still, investors should pay close attention to developments surrounding Vision Pro and the rest of the AR scene, as the first round of reviews comes in the first quarter. Whether it kicks off an AR revolution remains to be seen. Regardless, the following stocks seem more than worth a spot on investors’ radars.
Apple (AAPL)
Apple is quite possibly the leader when it comes to AR stocks, even though most consumers haven’t had the opportunity to try its AR headset quite yet. Indeed, there are a slew of great AR apps on Apple’s App Store. And as more Apple users get a chance to pick up a Vision Pro next month, my bet is the number of AR apps could swell at an accelerating pace from here.
Undoubtedly, AR games and experiences from the App Store are just the tip of the iceberg with the potential of augmented reality. At this juncture, Vision Pro seems to be marketed toward professionals looking to get a productivity boost. Perhaps a few extra screens and the ability to interact with 3D models are enough to get creative pros to pick up a headset.
In any case, I view the device as a must-have through the eyes of early adopters of tech, AR app developers and those intrigued by re-living memories made possible by spatial videos. In the meantime, I view Vision Pro (note the “Pro” part!) as paving the way for an eventual everyday device for the rest of us.
Snap (SNAP)
Snap (NYSE:SNAP), the social-media platform behind many cute video filters, is also an AR play you simply cannot count out of the game just because its stock is a long way from its all-time highs. Despite new heights being nowhere in sight, the stock has been really gaining momentum of late, surging over 93% in the past three months.
Indeed, the Snapchat app as we know it still seems like just another social platform for young people to have on their phones. If you view the company through the lens of an AR investor, though, SNAP becomes so much more than just a social media company.
Don’t believe me? Snap CEO Evan Spiegel recently wrote that its Spectacles product represented a new computing “revolution.” Undoubtedly, truly capable AR technologies could go into future releases of the firm’s high-tech pair of glasses. Though I don’t expect Snap will have AR tech at Apple’s level anytime soon, I would keep tabs on the social firm as it tilts its business away from social media and toward AR.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOGL, NADASQ:GOOG) is perhaps a dark horse when it comes to AR. As the company bolsters its efforts to improve its position in the artificial intelligence (AI) revolution, investors must not ignore other technologies being worked on behind the scenes.
Until now, Alphabet has merely dabbled with AR tech, at least through the eyes of many consumers. Its Google Glass product was a complete flop and may have been perceived as the nail in the coffin for Alphabet’s AR endeavors.
Just because Google Glass failed to launch doesn’t mean Alphabet won’t be hungry to capture a piece of the AR market once it has a chance to heat up. Recently, Google lost a critical executive employee, Paul Greco, from its AR team. That marked a huge blow to the gut, but I’d be willing to bet that Google will land on its feet once AR finally becomes ready for the masses.
Until now, Google’s been way too early to the AR scene. But it’s far better to be early than not show up at all, right?
On the date of publication, Joey Frenette owned shares of Apple and Alphabet (Class C). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
