When IRL Gets Grim, Seek Solace In The Metaverse
Or just think about buying some deeply discounted Metaverse stocks.
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A year back, the Metaverse was, officially, gonna be yuge.
Now, with tech valuations on the floor and folks more preoccupied with the dollar cost of actual gas than the .eth cost of gas fees, nobody is talking about the Metaverse anymore. Heck, even the “wonder if they regret that renaming now” renamed Meta Platforms is said to be firing staff left right and center to cut costs, and literally nobody thinks they are going to maintain the proposed 50% cut on Metaverse items sold on their platform. Prolly not even Zuck.
So is it all over before it really began? Are stick figures with no arms, or no legs, we forget which (hilariously there is content circulating that said, well, the reason they have less limbs is to ensure that nobody’s avatar can get up to any Me Too type unwelcome activity - of course it’s nothing to do with the limited graphical ability of the compute systems powering the Metaverse, of course not!), the end of the road? Is it all a busted flush doomed to go the way of Beenz, the internet’s first digital currency?
The Metaverse right now is in a kind of trough of despair, the second stage of the hype cycle that comes right after the evangelization by early adopters. And funnily enough, Metaverse stocks are all beat up too. For one simple indicator of that, let’s look at one of the very first Metaverse ETFs, $METV.
Now featuring under $100m AUM, that chart is just a straight yikes-where-does-it-all-end pattern. Not a good look.
Lying In The Gutter Looking Up At The Stars
We think we’re not done here. Because as we’ve said many times on these pages, we believe the Metaverse is simply the next step in the evolution of the internet. If 1.0 was simple HTML pages, 2.0 rich content and web-native applications, and 3.0 currently the subject of some debate but certainly some admixture of decentralization, security and transaction processing, we see the Metaverse as the destination for the internet as used by the wetware. As consumer-facing enterprises develop their ability to transact in the Metaverse, we anticipate more users flocking to it. Along the way, better devices and a better UI will help.
The big selloff in stocks in recent months - particularly the flagship tech names who power the Metaverse - has yielded some compelling opportunities to buy into the growth of the Metaverse using single-stock names that show every sign of reversing upwards. And the proximity to what may be a market bottom means you can use stop-losses to protect yourself if the slide continues, without having to place your stop in an unnatural position merely to limit losses.
For our paying subscribers only, we now walk you through two stock picks that we think offer attractive risk/rewards right now. We give you price targets for the short- and long-term, and stop-losses that you can use in case the slide continues.