Fastly is an Edge Computing company.
This is going to be important if
the Metaverse gets larger and larger
as there will be a massive amount of data transfer.
Imagine if your entire computer setup
was powered within VR,
you would need a lot of computation.
Edge Computing does some of the computing locally
before sending it off to the cloud, making things
a bit more efficient.
Fastly currently has a market cap of $5.1 billion,
sales of $290 million,
a Price to sales of 31
and no net income as of yet
due to high R&D spend.
Next is Immersion, likely the cheapest on this list.
Immersion is a haptic feedback company.
You know how a game controller will
vibrate when you die because you just did that
classic quick save and then jump into the lava
to see if the lava kills you?
The lava always kills you.
[Sad Music]
In the Metaverse, we'll eventually have
gloves with built in sensory feedback,
and companies like Immersion will build this technology.
One concern with Immersion is
their sales have decreased in recent years,
leading to a lower stock price.
They are profitable, though, and more than
90% of the revenue is recurring,
so there is a bit of safety built into this stock.
And this new Metaverse push
They're one of the few Metaverse adjacent stocks
that have yet to really take off.
- I'm not in a slump.
- You're not?
Scoreboard
- I don't slump, people.
Next is a good option if you don't feel like
tracking individual stocks,
but you want some Metaverse exposure
because you feel it's going to be a big industry.
Allow me to introduce the Meta ETF,
which is offered by Roundhill investments.
This ETF will offer exposure to 41 Metaverse
and Metaverse-adjacent stocks.
This is probably the easiest way to
make sure you're not missing out on
any opportunity in this space,
but it does come at a cost.
They have a fairly high expense ratio of 0.75%.
If you want to avoid these fees,
you can either pick individual stocks,
Or, life hack: you can use an app like M1 Finance
that allows you to make Pies comprised of
mini stocks, meaning you can just
copy this ETF one for one
and have no expense ratio whatsoever.
I will have M1 Finance linked in the description.
Also, while you're down there
messing around in the description,
make sure you check out my Patreon
where you'll find my Buy alerts
now at more than 130% in the last
seven or so months, a private community
and a whole lot more.
Make sure you nab one of those spots
while you still can.
Next, our list is a software company
called Unity.
If you've ever wanted to make your
own movie or video game, but thought
you know, that would never be possible,
there's no way I could afford that
or even learn the skills to do it.
Well, thanks to Unity, artists and storytellers are
able to develop a game without needing to
understand how to code
through their visual scripting tools.
Unity is one of the biggest game development companies
in the entire world, helping to develop more than
half of all mobile games.
They're also the biggest competitor to the
Unreal engine, the company behind Fortnite.
During their third quarter earnings call,
Unity announced the acquisition of Weta Digital,
a visual effects company based out of New Zealand,
which was responsible for the creation of
special effects in The Lord of the Rings films.
Now, aside from these impressive feats,
Unity is a company with
One big opportunity is
Unity has a "Develop once and deploy everywhere" capability,
meaning you can make a game and deploy it across
any platform, whether that be PlayStation or macOS
Now one of the biggest upsides I see to
owning Unity stock is their brand recognition.
More than 60% of everything
built for VR and AR, is built in Unity.
their software can actually
be used for a number of other industries as well,
including construction, architecture, and
even autonomous driving technology.
In the automotive field, Unity has partnerships with
Audi and Toyota.
They're attempting to reimagine how
companies in the transportation
and manufacturing sectors bring products
to life with Unity's real time 3D technology.
Car manufacturers like Toyota are
able to use Unity's 3D technology
to build models of their cars,
eliminating the need for expensive prototypes.
And this is just one example of how Unity software
could cut into many different industries
within the next decade.
Now, Unity, as impressive as they are,
is not a cheap company right now.
With the current Price to sales of 54,
a lot of growth is baked into their
current share price, and for good reason-
their revenue has increased more than 40%
year over year for the last two years.
Their net income is currently negative as
52% of all their revenue, $403 million
was spent on R&D this year.
If they keep up their growth rate, though
for the next four to five years,
we will see investors rewarded handsomely.
Next on the list is Matterport.
Matterport is an all in one 3D data company
with a platform that enables anyone
to make a digital twin of any inside space
like a home, an office, a hotel, or a factory,
you name it, you can take some pictures
and make a 3D space.
In May of 2020, Matterport released
their mobile app, which put their technology
in the hands of the everyday user.
Before this happened, the only way to
capture a 3D model of the space
was with the Matterport Pro 2 camera, which
was expensive and difficult to use
for the normal retail user.
Matterport
And they have an interesting here that reminds
me a lot of Tesla.
Matterport launched their expensive Pro 2 camera first
and then that launch allowed them to gather data,
which enabled them to later develop a much
more accessible mobile app.
The initial data allowed Matterport
to create these beautiful 3D experiences
using only flat photos taken on your smartphone.
I was interested, so I went ahead and decided
to try it out myself.
So here's a little 3D model of my
tiny kitchen, excuse the container of catnip on the counter.
So as of now, Matterport has a huge
advantage over their competitors.
There's a massive opportunity here.
There are 4 billion buildings worldwide
that Matterport aims to capture.
and integrate onto their platform
minus one because I just did my kitchen.
And also Matterport partnered with Facebook,
*Meta* this summer to develop AI systems
for the physical and digital world.
However, there are a couple of things that I would
consider here before looking to
purchase some shares in Matterport.
In a recent statement made on the 10th November,
Matterport announced that stockholders are
entitled to receive a number of Earn-out shares,
making up approximately 23 million
shares of Class A stock.
That's about 10% of the total current shares.
What this means is the
However, given how the stock market works,
this should already be priced
into the current share price.
Now Matterport is a smaller company on this list
at $7.8 billion market cap.
But this isn't exactly a cheap investment either.
again because they're in a high growth phase
and a lot of money is going into research and development.
However, their sales and subscription revenue are
trending upwards and if this trend can continue with
this double digit growth that we've seen,
it could be a good long term Metaverse buy.
Now next we have Nvidia.
Nvidia is a massive tech company
founded in 1993.
They invented the first graphics processor unit, GPU
they currently have a market cap of $821 billion.
Nvidia has four pillars-
gaming, professional visualization,
data centers and artificial intelligence.
Now Nvidia's venture into AI
is more recent, but it will be the life force
for Nvidia's Omniverse, which is currently
being built.
The Nvidia Omniverse is a platform
designed to be a place where creators,
designers, researchers and engineers
can all come together to use tools
to build virtual worlds.
This is available both for individuals
and businesses.
The beta for individuals
is available and free to use now.
One thing that excites me about the Omniverse
is it uses an open source software called
Universal Scene Description, USD.
USD was invented by Pixar
built to help animate films and
and construct 3D environments.
But Nvidia's Omniverse is designed
to be used by nearly every industry
from travel, infrastructure, entertainment and construction.
Nvidia has been crushing through
all-time highs recently.
It's up more than 100% since
this time last year.
Despite that, their price to sales
is lower than a few others on this list at 19.5.
Nvidia does have healthy net income,
but we also have a P/E of 191,
meaning there is a lot of growth
priced into this as well.
and they are already a behemoth.
So this is what I'll be keeping a close eye on,
possibly dollar cost averaging in
very slowly, just in case we see any
future price corrections.
The final company I want to talk about today is Roblox.
Roblox is a company where users can meet
in immersive user-generated 3D experiences.
It has been incredibly popular among
kids and has hundreds of multiplayer games
that can be played on the platform, from
first person shooters to puzzle games.
Through the Robox studio, anyone can create
a game for free and then
Their mission is to "Bring the world together
through play".
Roblox currently has a market cap of $77 billion
and just overtook Activision
as the world's most popular
dedicated gaming company by market cap.
However, in a recent interview,
the CEO of Roblox revealed that he doesn't
think of Roblox as a video game company.
He envisions a future where the
Metaverse is a place where we come to interact
with others in all aspects of life,
from work to social engagements.
Earlier this month, the share price shot up
from $$75 to $100
in just a matter of hours,
and it's been steadily growing since.
Now trading above $124 per share.
They had a bit of a perfect storm recently, with
all the hype around the Metaverse and releasing an
earnings report that beat
expectations at the same time.
Now, due to the fact that they just smashed through
all-time highs, it may be wise
to wait for the price to settle just a little bit.
I see Roblox
But be careful
diving in too heavy all at once.
Investing in the Metaverse could turn out to be
more than just kind of profitable.
I'm interested to see how these companies
improve the quality of our lives
and see the various industries that will benefit
from this new technology.
One last reminder to join the Patreon community
for the best darn deal on the Internet
for as little as $10 a month.
And from here, you need to check out my other video
on the top Metaverse cryptos.
😂