Hello everyone. Welcome to the Smart Market Insights here on Kalkine TV. I am James and
today we will be shining some light on the 5 ASX Companies to Watch as Lucrative Metaverse
Takes Shape & Will Omicron variant derail Australia's economic recovery?
Last month, a monumental step was taken in ushering in the next incarnation of the internet.
Chief Executive and founder of Facebook (now rebranded “Meta”), Mark Zuckerberg, announced
in late November that the metaverse would steer the next chapter of the internet.
Although the metaverse is not a new concept, Zuckerberg’s announcement put the concept
into the mainstream collective consciousness and sent investors on an urgent search to
get in early on the technology, which is still in early development.
What Is Metaverse?
To put it simply, the metaverse is an online virtual reality (VR) world, where the
user is immersed in the internet as opposed to experiencing the internet through a screen
or monitor.
The concept has existed for a number of years with the Oculus Rift VR headset launching
in 2016.
Since 2016, the Oculus Rift has evolved into the Oculus Quest 2, which has redefined gaming
and makes it possible for people to have online meetings using their avatar (a digital online
persona).
It is these VR worlds which constitute the metaverse – an online place where people
can live in a virtually programmed and developed world.
This has enormous implications for entertainment, commerce and even defense. In fact, Bloomberg
Intelligence estimates that the global market size for the metaverse could potentially reach
a whopping US$800 billion by 2024.
So far, there are only a handful of companies available in the ASX that offer exposure to
this emerging technology. Of course, many more will emerge if demand soars, which seems
inevitable at this point.
Here are five of the best metaverse-related companies currently available on the ASX.
PlaySide Studios (ASX:PLY)
Launched in 2011, this Melbourne-based company boasts a portfolio consisting of 52 titles
delivered across 4 platforms: Mobile, Virtual Reality, Augmented Reality and PC.
PlaySide have partnered with several Hollywood Studios as well as leveraging investment in
Esports – a huge growth area of the gaming industry.
In November, the company raised capital, which a part of would be dedicated to blockchain
gaming space, linked to the metaverse.
Vection Technologies (ASX:VR1)
VR1 has been working on its technology to deliver virtual reality solutions to a wide
range of industries from media to real estate and even defense.
In November, VR1 unveiled its FrameS Metaverse release and also completed a AU$12 million
capital raise.
The new technology allows organisations to develop 3D/VR immersive metaverses where users
can inhabit from anywhere in the world.
VR1, which has grown 114.29% in the past six months, appears to have a long-term commitment
to the space, which means it’s definitely one to keep an eye on.
Indoor SkyDive Australia Group (ASX:IDZ)
Indoor SkyDive Australia will soon change its name to XReality Group (ASX:XRG) to better
align with its long term vision and growth strategy. This was bolstered by the recent
acquisition of Red Cartel - an Australian VR entertainment production and defence studio.
The development of a new division, called Operator Tactical Solutions will develop simulations
designed for training for defense organisations and law enforcement agencies worldwide.
The year-to-date growth of IDZ is an impressive 540%.
Aerometrex Ltd. (ASX:AMX)
Aerometrex has over 40 years of experience in aerial imagery and mapping and 3D modelling.
It was recently thrust into the metaverse space following the $250,000 sale for a 3D
image contract of the city of San Francisco for use in a proprietary metaverse.
This push into the metaverse is a new direction for the company and could well make it one
to watch out for.
iCandy Interactive Limited (ASX:ICI)
iCandy Interactive is a Melbourne-based company, which develops and publishes mobile games
and digital entertainment worldwide.
iCandy’s games are played worldwide and have created games that have been on Google
Play’s and Apple Appstore and have received several awards in various coveted international
events.
The company recently announced the acquisition of Lemon Sky Studios, which the company says
will help the group push towards building the extended metaverse.
The Verdict
The selection of metaverse-related companies on the ASX may be sparse right now, but that
is almost certain to change as this technological revolution takes hold. In the meantime, these
five companies could represent an opportunity for investors to get a jump on the metaverse
before it explodes.
Wait this is not the end while we talk about future in today’s edition of Smart Market
Insights we also look at how the market can be derailed with Omicron variant hampering
Australia's economic recovery
While the Omicron variant has caused much stir across different parts of the globe,
Australian policymakers continue to debate whether its impact will be damper relative
to the Delta variant. The new variant has hit the country at a time that was strategically
important for the economic revival. As the economy was just opening and businesses resumed
operations, the new cases created a cloudy environment surrounding the nation’s economic
recovery.
Federal authorities are trying to chart out a plan that lets them open the country even
as the New South Wales cluster grew to 25 cases. For instance, the Queensland domestic
border would see an earlier-than-expected opening on December 13, with certain protocols
to be followed.
However, not all states have resounded with the hopeful sentiment that the new variant
would be milder than the previous ones. Some regions have decided that the new variant
should not be tested and instead, it is best to take preventive measures.
For Australia, rising lockdowns and the imposition of the virus-related protocol has emerged
with an additional burden of mass unrest, evident through several demonstrations across
the country. Amid this backlash from some individuals, Australia’s vaccination rate
stands at about 88 per cent for those above 16 years of age. This could help the country
build immunity against the new strain while putting the economy in less turmoil.
The Australian economy is going from strength to strength since the easing of virus restrictions.
The first indication of an improving economy was the rise in business confidence, followed
by slower price growth in the housing market, with the country nearing its inflation target.
Subsequently, the country observed better-than-expected economic growth in the third quarter, with
GDP contracting by 1.9 per cent, majorly due to the Delta variant outbreak. These factors
have put the country in a better position than it had been in during the previous outbreaks.
We hope this variant can be controlled and push back with effective vaccinations causing
little or no damage to Australia’s economic recovery.
Well, that’s all for now. We will be back again with the exclusive Hot Performers show.
Till then, keep watching Kalkine TV for the latest market updates and related insights.
I am James Preston, signing off.