The Wall Street buzzword of 2022 is "metaverse." The concept is relatively simple: the metaverse is a digital world in which every day experiences — working, socializing, shopping and more — take place, explains Tony Daltorio, editor of Market Mavens.

The economic potential of the metaverse is not lost on the world's biggest brands. Nike (NKE) has already prepared for such a future.

On December 13, 2021, Nike acquired RTFKT Studios. It is a leading brand that uses cutting-edge innovation to deliver next generation collectibles that merge culture and gaming.

John Donahoe, President and CEO of Nike, said: "This acquisition is another step that accelerates Nike's digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming and culture."

RTFKT has only made digital sneakers so far, but its technology could be integrated with existing channels to sell real-life Nike footwear. Your avatar in the metaverse could buy trainers, signaling Nike to send you a real pair in your size. Many more identical pairs of metaverse trainers will be sold, but only one pair is yours.

This move into the metaverse should help Nike's bottom line. It will enable Nike to produce samples without the expense of manufacturing physical samples of the sneaker. The virtual samples will enable the company to broadly distribute the look of the sneaker as well.

Bottom line: the reduced selling costs on the income statement will grow as the months pass and Nike expands this part of its business.

Nike also recently created a virtual world — in conjunction with Roblox (RBLX) — called Nikeland, which was developed by the Brainiac Commerce e-commerce platform. In Nikeland, Nike has created a world to add even more innovation and excitement for its customers.

Overall, I really like Nike's jump into the metaverse. It's a move that will translate into vast real sales for the company. If I were building a metaverse portfolio from scratch, I would include Roblox and Nike, a company that has been in business since 1964 and knows how to sell its products to people. Nike is a buy anywhere around the $150 a share range.

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