Bet on the construction of the metaverse with a stake in the MTTR share
Ready to jump straight into the metaverse? Or at least expose your wallet to it? If so, consider a spatial data business Matterport (NASDAQ:MTTR), because the MTTR share is an outright investment in the future growth of the metaverse.
It’s a speculative game, I admit. The metaverse is still a new concept for many people and may be difficult for some people to grasp.
To put it simply, the metaverse is a virtual world where people can do a number of things that they would do in real life. For example, you can play games, shop, socialize, make art, and even run an entire business in the Metaverse.
Maybe you are not quite ready to dive head first into a virtual world. This is perfectly fine. You can still hold a position in Matterport if you believe there is a big, bright, and lucrative future for the Metaverse.
A closer look at the MTTR share
Following the merger of an ad hoc acquisition company (SPAC) with Gores Holdings VI, Matterport started trading on the Nasdaq July 23.
The interest aroused by the launch of the MTTR action was not lacking. After all, Matterport’s 3D renderings of physical spaces were a much-requested service, especially as Covid-19 accelerated the adoption of digital universes.
And indeed, the stock price went from $ 14 in July to $ 25 in November. At one point, it hit $ 30.80 for a doubling of the share price since July.
So what to do now? Once we know more about Matterport as a business venture, you can trade the company’s stock for the short or long term.
If you are a short-term trader, you can expect the MTTR stock to pull back to $ 20 (which may or may not happen). Matterport is currently trading at around $ 27.
On the flip side, long-term investors may just start accumulating stocks if they like Matterport’s future prospects.
Adoption on the rise
At this point, you might still be skeptical of the Metaverse in general and Matterport in particular. Really, though, you don’t have to be part of the Metaverse to appreciate Matterport’s growth story. As long as other people get involved, that should be convincing enough.
Consider this: in the third quarter of 2021, Matterport total number of subscribers increased 116% from a year ago. So obviously there are a lot of users in the metaverse corner of Matterport.
In addition, the company has been successful in monetizing the participation of its users. As proof, note that Matterport’s subscription revenue in the third quarter of 2021 increased by 36% compared to a year ago.
In light of these numbers, Matterport said it “defines the category” and is the “clear market leader”. The company has a market presence in around 170 countries, so it’s not just bragging about.
In the first rounds
It should also be pointed out that Matterport has a partnership with a famous social media company. Notably, this company is currently leaping into the metaverse.
As you have probably understood by now, I am referring to Meta (NASDAQ:FB), which almost everyone still calls Facebook.
It has been reported that the two companies are work together to create the largest 3D interior space dataset ever created via Facebook AI Research. With that partnership in mind, Wedbush analyst Dan Ives seems to be leaning on Matterport and the partnership itself.
âWe believe this was the first step towards a much larger relationship between Facebook and Matterport as Zuckerberg & Co. move into the metaverse,â Ives said.
Obviously, Ives for sees this collaboration as a game-changer.
âWe continue to believe that Matterport is in the early stages of a story of massive growth that will unfold over the next several years,â the analyst said.
The bottom line
Whether you are a short-term trader or a long-term investor, there are strategies you can adopt with MTTR stocks. If you’re just in it for a quick spin, you can buy the stock on a downside and sell it for a possible 10% or 15% gain.
The best returns, however, could go to Matterport’s long-term shareholders.
As the Metaverse becomes more and more accepted and populated, Matterport remains on the cutting edge of technology. If the business is good enough for Zuckerberg & Co., maybe it is good enough for you too.
At the date of publication, David Moadel did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.