The titans of Wall Street are nearly unanimous now: the Metaverse is going to be an economic explosion with huge implications for businesses and investors.
That’s the only reasonably conclusion this week after Citigroup joined Goldman Sachs on Friday to pin a value on the metaverse of “at least $8 trillion” and possibly as much as $13 trillion in terms of total addressable market by 2030.
Incidentally, that’s the same number Goldman put on the concept a few weeks ago, joining JPMorgan, Morgan Stanley, and Bank of America as forecasters of a metaverse value measured in trillions.
That bodes extremely well over the long term for stocks with strong ties to the space. With that in mind, we take a closer look at a few of the more interesting names that fit that description below.
Matterport Inc. (Nasdaq:MTTR) operates as a spatial data company that focuses on digitizing and indexing the built world. The implications for the transition into the Metaverse should be obvious.
The firm’s products include 3D content platform, pro2 3D camera, 360 cameras, virtual reality, and mobile apps. It serves residential real estate, engineering and construction, travel and hospitality, and commercial real estate sectors.
Matterport Inc. (Nasdaq:MTTR) recently announced it will host the next installment of the Matterport Space Jam virtual event series, featuring five of its app developers that are building software solutions on the Matterport platform for retailers. The event will take place on April 28 at 8:30 am PT, offering attendees an opportunity to learn how five Matterport app developers and partners build solutions that enhance the value of Matterport digital twins for retail businesses.
“As the world continues to shift online, retailers must adapt with immersive, virtual shopping experiences that meet the changing needs of their customers,” said Stephanie Lin, Senior Director, Global Retail Strategy for Matterport. “We’re thrilled for another opportunity to showcase our app developers and partners to demonstrate how solutions built on top of Matterport digital twins are powering new, exciting experiences for retailers and their customers.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 7% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 26% in that time on strong overall action.
Matterport Inc. (Nasdaq:MTTR) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($404.9M against $33.3M).
Allstar Health Brands Inc. (OTC US:ALST) bills itself as an emerging growth technology company entering the new era of innovation and emerging technologies, including the Metaverse, Virtual Reality, and Augmented Reality.
Currently ALST and has a number of distribution networks that involve sales of nutraceutical and other health equipment to various countries in the Western Hemisphere. Hospital equipment, health testing, PPE have dominated the Company’s activities over the last 18 months. But in that time, the Company also formed contacts for supply and for sale, largely in the US and Canada, but also stretching into other Western Hemisphere countries. The ability to move PPE, testing supplies, and health equipment is now being enhanced with Nutraceutical products, which can be moved along the same distribution networks already established.
Allstar Health Brands Inc. (OTC US:ALST) has been moving in the metaverse technology direction recently through its announced investment interest in AdventGalaxy, a division of TGI SOLAR POWER GROUP Inc. (OTC US:TSPG).
That sets the stage for the company’s announcement this week that Advent has signed an active development agreement with GIANT.net to advise and assist the project to create its own cryptocurrency and collection of non-fungible tokens, with future plans that include filing with the U.S. Patent and Trademark Office for additional trademarks.
According to the company, GIANT.net will assist Advent’s management to develop the digital currency strategy, NFTs, and a create a Mega Mall with new products sourced from top brands around the world. The ADVENT MEGA MALL has the potential to become a central virtual hub where people of all backgrounds and ages can meet and interact, and where commerce, entertainment, and culture can grow in new ways. It will also foster new ways of doing business, including virtual co-working spaces. A VR/ AR ADVENT MEGA mall is coming soon and will become a reality, thanks to ADVENT GALAXY, powered by ROOMFUL.net.
GIANT.net’s founder, Chase Gassert, commented, “The Metaverse is a not a unique idea or original concept. It’s a logical progression in the modern world, but one still in its early stages. More than likely, there will be more than one Metaverse built and maintained by multiple large tech companies that are adopted by the general public. And, long-term, it will be a combination of VR and AR as the market grows. The more immersive – but also the more practical and helpful to the average person – it becomes, the more it will redefine our daily lives.”
Allstar Health Brands Inc. (OTC US:ALST) President, Peter Wanner, stated, “Adding CRYPTO and NFTs will help to create real branding strength for ADVENT GALAXY, as well as a strong buzz in the crypto community and among investors and professionals. It will also help to bring new, young audiences to our ADVENT GALAXY MEGA MALL and its related social media channels. ALST is proud to be affiliated with its partners in this grand technology experience.”
Immersion Corporation (NASDAQ:IMMR) bills itself as the leading innovator of touch feedback technology, also known as haptics. The company invents, accelerates, and scales haptic experiences by providing technology solutions for mobile, automotive, gaming, and consumer electronics.
Haptic technology creates immersive and realistic experiences that enhance digital interactions by engaging users’ sense of touch, which is doubtless a part of realizing the full extent of the Metaverse vision, putting IMMR on the map in this theme on a core level.
Immersion Corporation (NASDAQ:IMMR) recently posted an article from the company’s chief technology officer, Chris Ulrich. In the article, Ulrich noted, “In Dec. 2019, I hosted and led a lunch discussion at the Pan Pacific Hotel in Seattle as part of the 3rd annual SmartHaptics conference. The topic was ‘how to grow the haptic ecosystem?’ and the attendees included haptics experts from a few large CE companies, some key component suppliers and some key researchers. Although haptics was rapidly becoming a commonly known and understood technology, it was clear to many that some collaborative effort would be required to realize the potential of the technology.”
He went on to conclude, “Since that lunch in 2019, the industry has made substantial progress towards maturing haptics as a media type and allowing it to reach its true creative potential. It is only through the collective effort of many experts and the commitment from their organizations that this has been possible. With the ratification of haptics in ISOBMFF and the reference technology for MPEG, we have successfully executed the first big step, but there is still much to do.”
Traders will note 7% piled on for shareholders of the company during the trailing month, but that move comes in the context of a larger bearish trend. That said, IMMR is a stock with a past that has featured a litany of sudden rips to the upside. Moreover, the listing has seen a growing influx of trading interest.
Immersion Corp. (Nasdaq:IMMR) has a significant war chest ($137.9M) of cash on the books, which must be weighed relative to about $16.6M in total current liabilities. One should also note that debt has been growing over recent quarters. IMMR is pulling in trailing 12-month revenues of $35.1M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -10.9%.
Other key stocks with strong ties to the metaverse theme include Roblox Corp. (NYSE:RBLX), NVIDIA Corp. (Nasdaq:NVDA), Meta Platforms Inc. (Nasdaq:FB), and the Roundhill Ball Metaverse ETF (NYSEArca:METV).
