Metaverse stocks are not as popular as they were a few years ago. They are now considered high risk. Rewind to late 2021 and it was just as easy to speculate that they were a sure ticket to the rich.
At the time, investors were desperate to understand what the Metaverse was and what it could be. Indeed, this space was a profitable space that promised a new future. Investors aren’t so sure right now.
After that, Metaverse stock reached a frenetic surge. meta platform (Nasdaq:meta) began rebranding in late October of that year. But since then, the company’s spending has looked more like a black hole than the future. As such, cost savings are seen as a plus for the social media giant, and investors are less excited than ever about increasing metaverse spending.
Having said that, I believe that Metaverse shares continue to be relevant and have legitimate potential. Of course, investors should be aware that these are boom or bust bets.
So let’s take a look at some of the riskier metaverse stocks that could swing in either direction.
matter port (Nasdaq:MTTR) stock is difficult to judge in terms of its hero or zero status. 3D data platform companies have some real challenges and some real problems. But it’s hard to escape the idea that Matterport was simply caught up in an overhyped fad and that it wasn’t really Matterport’s fault for its quick successes and failures.
What I mean is Matterport is a company that went IPO in early 2021. The company promised to digitize the physical world. For many investors, that was enough, and those who believed in the Metaverse at the time were looking overly eager for every opportunity. Matterport wasn’t building a metaverse world or anything particularly dangerous. Rather, it was a pick-me-up investment. It was advertised as a company that digitizes the physical world.
As a result, the company’s stock price surged from IPO levels of $12 to $28 by late 2021. However, the Metaverse hype eventually subsided and MTTR stock plummeted (currently below $3 a share).
That said, the company continues to grow Earnings until today. And despite the heavy losses, investors have come to realize that unless the metaverse monetizes more quickly, such companies are unlikely to regain their former valuations.
At the moment this may be more zero than hero, but if the company can show that it can monetize its services and provide a path to positive returns down the road, there is certainly a positive side.
want to categorize roblox (New York Stock Exchange:RBLX) in the same bucket as Matterport. Both were disappointing based on price fluctuations. Both companies went public around the same time and benefited from higher prices, peaking in late 2021 but ending well below today’s IPO prices.
But even with IPO investors still down about 40%, Roblox is more hero than zero. Because Roblox continues to build a valuable platform that boasts strong growth and engagement metrics.
Roblox is making big money, generating $655.3 million in revenue. first quarter 1 person. This represents a 22% increase over the previous year. Average daily active users also increased by percentage. All of these ongoing possibilities make it easy to overlook his $268 million net loss to Roblox in the first quarter.
Roblox certainly needs to improve operational efficiency sooner or later. However, as long as we can continue to grow and remain relevant, we don’t have too much pressure yet. Gaming is a fascinating field, and Roblox benefits as a builder’s platform for gaming experiences. It will continue to be important, so that Roblox can continue to chase hero status.
Immersion Corporation (IMMR)
Immersion Inc. (Nasdaq:IMMR) is a company engaged in the business of haptics software. Haptics is a technology that reproduces the sensations that users actually feel when placed in a simulated environment.
The company sells across multiple industries including automotive, gaming, and mobile devices. Overall, it’s also a relatively small company.reported that the company had just finished $7 million The first quarter earnings came at a time when the earnings were slightly negative year-over-year.
Immersion Corp. looks like a pretty healthy company. It didn’t lose money, instead boasting net income of $8.27 million for the quarter and $5.1 million for the same period last year. Immersion Corp. is a solid company. The company is the kind of company that belongs in a portfolio that seeks exposure to the possibilities of games, technology and the metaverse.
But is it a hero? No, it’s not. We are not the type of company that will grow into a giant company anytime soon or in the future. It’s neither hero nor zero, it’s a solid company overall.
As of the date of publication, Alex Sirois did not hold any positions (directly or indirectly) in the securities referenced in this article. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com. Publication guidelines.