Welcome to ‘The Metaverse Investor’.
Remember the Metaverse? It’s, like, SO 2021. And it died with the NFT craze followed by the headcount cull at Meta “Maybe We Shouldn’t Have Changed The Name After All” Platforms. Right?
You see the Metaverse is not, in our view, a niche interest involving legless Zuckerberg avatars or Lego-type characters in a Roblox environment.
We believe the Metaverse is put simply the next great leap forward for the Internet. That the Internet should become more immersive, more graphical, more threedimensional, more real-time, across more devices, and more intertwined with the real world? That’s just a continuation of how the Internet has evolved since its early days, from command line communication through the hypertext and browser revolutions, to rich media, to online applications, to the Internet we all use today.
Most all expectations about the Internet come true - they just take a while. Today everybody buys a wall of stuff on their mobile phone, but nobody talks about m-commerce as they once did in around 2002 with a dreamy look in their eye. And when we are all using immersive, 3D Internet environments to conduct our work and our leisure, nobody will be talking about the Metaverse, in our view. People will just be getting on with stuff.
The driver of this happening won’t be technology per se. For sure, the technology industry has to go through a generational refresh which will touch every device and every piece of software - today’s systems can’t handle the compute power the storage, the network capacity and latency required - and that represents a big market opportunity. This is why technology vendors have embraced the Metaverse. Semiconductors, systems, software, services, all has to go through a tectonic shift to deliver the Metaverse experience. But that’s a consequence, not a cause.
The driver of the Metaverse becoming more widespread is the same driver that has sat behind the Internet since its emergence from the Department of Defense in the 1970s.
When the Internet went graphical and companies began to embrace the Web as a sales channel to early adopters, the tech industry responded with a huge replacement cycle from the late 1990s until around the time of the financial crisis in 2008-9.
When networks became fast enough and users sufficiently accustomed to transacting online by default, the tech industry gave you Internet 2.0, a refresh cycle that started around 2010-11 and completed with the last of the Covid stimulus monies.
Well, you now have Nike, Starbucks and others setting up immersive online stores in Metaverse environments. Brands like these see the immersive internet as a way to engage their customers more deeply, before and after the transaction. They are the early adopters amongst corporates; many more will follow.
Right now, when folks think the Metaverse crashed and burned already - right now is we believe a great time to be investing in the stocks that form the bedrock of the opportunity.
Here at The Metaverse Investor we focus on finding long- and short-term investment opportunities to take advantage of the shift from flat Internet to immersive Internet.
This newsletter is available in both free and subscription versions.
The free newsletter covers investment topics on the Metaverse theme.
The low-cost subscription version provides actionable stock ideas, all focused on this new Metaverse generational investment opportunity. Actionable ideas come with price targets and a risk management framework. All brought to you with the pro-grade standard you have come to expect from Cestrian Capital Research, Inc.
Cestrian Capital Research, Inc - November 2022