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The munKNEE Metaverse Stocks Index tracks the stock performance of the 10 best metaverse stocks to buy in 2022 (per Elliott Wave Forecast). 

Below is the performance of the constituents for the week ending July 15th, in descending order, since we established our index at the end of May (6 weeks), and YTD with each stock's current Operating Cash Flow, Price-to Earnings (P/E) Ratio, Altman-Z Score, Piotroski F Score, Return on Equity (ROE) and Return on Assets (ROA). This information should help you assess the financial health of each company, how well the company is being managed and the extent to which the company is over- or under-valued compared to its peers. (Definitions of each metric are detailed at the bottom of the article.)

1. NVIDIA Corp. (NVDA): Was DOWN 0.5% for the week ending July 15th, is DOWN 15.6% since the end of May and is now DOWN 46.4% YTD.
   • is producing graphics and video processing chips for artificial intelligence and high-end computing and its products play an integral role in powering the metaverse.
     • Positive Operating Cash Flow: Yes 
     • Price-to Earnings (P/E) Ratio: 41
     • Altman Z-Score: 14.5 (less than 1% chance of financial distress in the next 2 years)
     • Piotroski F Score: 6
     • Return on Equity (ROE): 24.5%
     • Return on Assets (ROA): 14.5%
2. Take-Two Interactive (TTWO): Was DOWN 0.9% for the week ending July 15th, is DOWN 0.5% since the end of May and is now DOWN 30.3% YTD.
   • is generating more revenue from metaverse technology than any of its competition.
     • Positive Operating Cash Flow: Yes
     • Price-to Earnings (P/E) Ratio: 34
     • Altman Z-Score: 6  (less than 1% chance of financial distress in the next 2 years)
     • Piotroski F Score: 3
     • Return on Equity (ROE): 12%
     • Return on Assets (ROA): 7%
3. Autodesk Inc. (ADSK): Was DOWN 2.0% for the week ending July 15th, is DOWN 15.2% since the end of May and is now DOWN 37.3% YTD.
   • is offering a suite of technologies for rendering 3D animation, building and launching virtual buildings, and creating within virtual reality (VR) and augmented reality (AR) environments.
     • Positive Operating Cash Flow: Yes 
     • Price-to Earnings (P/E) Ratio: 78
     • Altman Z-Score: 3  (71% chance of financial distress in the next 2 years)
     • Piotroski F Score: 5
     • Return on Equity (ROE): 76%
     • Return on Assets (ROA): 7%
4. Roblox Corp. (RBLX): Was DOWN 3.6% for the week ending July 15th, is UP 32.8% since the end of May and is now DOWN 61.4% YTD.
   • is creating a platform for immersive co-experiences where people can come together within millions of 3D experiences to create their own “worlds” where they can interact and play with others over the internet.
     • Positive Operating Cash Flow: Yes
     • Price-to Earnings (P/E) Ratio: Negative
     • Altman Z-Score: 3  (1% chance of financial distress in the next 2 years)
     • Piotroski F Score: 5
     • Return on Equity (ROE): Negative
     • Return on Assets (ROA): Negative
5. Meta Platforms Inc. (META): Was DOWN 3.6% for the week ending July 15th, is DOWN 14.9% since the end of May and is now DOWN 51.0% YTD.
   • is investing billions to create software and content for augmented reality and VR applications, allowing it to address multiple metaverse angles.
     • Positive Operating Cash Flow: Yes 
     • Price-to Earnings (P/E) Ratio: 12
     • Altman Z-Score: 10  (less than 1% chance of financial distress in the next 2 years)
     • Piotroski F Score: 5
     • Return on Equity (ROE): 28%
     • Return on Assets (ROA): 17%
6. Microsoft Corp. (MSFT): Was DOWN 4.1% for the week ending July 15th, is DOWN 5.6% since the end of May and is now DOWN 23.3% YTD.
   • is enabling shared experiences from anywhere through mixed reality applications.
     • Positive Operating Cash Flow: Yes
     • Price-to Earnings (P/E) Ratio: 26
     • Altman Z-Score: 8.5  (2% chance of financial distress in the next 2 years)
     • Piotroski F Score: 8
     • Return on Equity (ROE): 45%
     • Return on Assets (ROA): 23%
7. Matterport Inc. (MTTR): Was DOWN 10.3% for the week ending July 15th, is DOWN 30.1% since the end of May and is now DOWN 81.4% YTD.  
   • is providing 3D cameras which bring depth to an image and 360 cameras which bring multiple angles on an app to capture these images on your smartphone as well as software that pulls this all together into one digital twin of the space, and applications to layer on AR features.
     • Positive Operating Cash Flow: No
     • Price-to Earnings (P/E) Ratio: Negative
     • Altman Z-Score: 9 (28% chance of financial distress in the next 2 years)
     • Piotroski F Score: NA
     • Return on Equity (ROE): Negative
     • Return on Assets (ROA): Negative
8. Cloudflare Inc. (NET): Was DOWN 10.5% for the week ending July 15th, is DOWN 16.8% since the end of May and is now DOWN 64.6% YTD.
   • is providing the underlying networking and data services required to make the metaverse a reality by using a software-defined networking (SDN) model that replaces networking hardware such as routers, switches, and load balancers with far cheaper and more scalable software.
     • Positive Operating Cash Flow: Yes 
     • Price-to Earnings (P/E) Ratio: Negative
     • Altman Z-Score: 5  (17% chance of financial distress in the next 2 years)
     • Piotroski F Score: 4
     • Return on Equity (ROE): Negative
     • Return on Assets (ROA): Negative
9. Match Group Inc. (MTCH): Was DOWN 13.3% for the week ending July 15th, is DOWN 17.2% since the end of May and is now DOWN 50.7% YTD.
   • is expanding its matchmaking efforts into the virtual realm by integrating avatar-based virtual experiences into its portfolio of mobile applications.
     • Positive Operating Cash Flow: Yes
     • Price-to Earnings (P/E) Ratio: 72
     • Altman Z-Score: 0.9 (71% chance of financial distress in the next 2 years)
     • Piotroski F Score: 7
     • Return on Equity (ROE): Negative
     • Return on Assets (ROA): 14%
10. Unity Software Inc. (U): Was DOWN 25.5% for the week ending July 15th, is DOWN 15.7% since the end of May and is now DOWN 76.4% YTD
    • is the leading platform for creating and operating interactive, real-time 3D content, giving creators the power to build complex, data-oriented apps using its Mixed and Augmented Reality Studio tool.
      • Positive Operating Cash Flow: Yes 
      • Price-to Earnings (P/E) Ratio: Negative
      • Altman Z-Score: 2  (25% chance of financial distress in the next 2 years)
      • Piotroski F Score: 4
      • Return on Equity (ROE): Negative
      • Return on Assets (ROA): Negative

Hopefully the above information will help you assess the financial health of each company, how well the company is being managed and the extent to which the company is over- or under-valued compared to its peers.

Definitions:

Operating Cash Flow:

• Is money involved directly with the production and sale of goods from ordinary operations or, in other words, money coming in through sales minus operating expenses.
• Without positive operating cash flow a business doesn’t survive and, as such, is the best measure of a company’s financial and operational health.

Price/Earnings (P/E) Ratio:

• Is a measure a company's share price to its earnings per share and has the most value when compared against similar companies in the same industry or for a single company across a period of time.
• Helps one determine whether a stock is overvalued (a high P/E) or undervalued (a low P/E) and can also be benchmarked against other stocks in the same industry or against the broader market.

The Altman-Z Score:

• Is a numerical measurement used to predict the chances of a business going bankrupt in the next two years and has an accuracy that ranges from 82% and 94%.
• Is based on five financial ratios - profitability, leverage, liquidity, solvency, and activity. 

The Piotroski F Score:

• Is a back-tested strategy that rates how strong the financial fundamentals are for a value stock and in back-testing of the system against the market between 1976 and 1996 the system it would have beaten the average return on the stock market by 13.4%.
• A score of 0-3 indicates that the company has weak fundamentals while a score of 8-9 indicates a company with powerful fundamentals that are most likely to keep performing well in the future.

Return on Equity (ROE)

• Is a measure of how many dollars of profit are generated as a percentage of each dollar of shareholder's equity and, as such, is a metric of how well the company utilizes its equity to generate profits.
• The higher the ROE, the better a company is at converting its equity financing into profits.

Return on Assets (ROA)

• Is a measure that indicates how profitable a company's net income is as a percentage of its total assets and, as such, factors in a company's debt while return on equity does not.
• A higher ROA means a company is more efficient and productive at managing its balance sheet to generate profits while a lower ROA indicates there is room for improvement.