Intensive positive overlay market selling, Metaverse concept shares ushered in gold investment opportunities
Microsoft’s acquisition of Activision Blizzard brought great benefits to Metaverse and ushered in golden investment opportunities for concept stocks
Intensive positive overlay market selling, Metaverse leading stock investment opportunities
Microsoft (MSTF.US), one of the world’s largest companies, announced last Wednesday that it would buy video game giant Activision Blizzard (ATVI.us) for $69 billion, its biggest acquisition ever. This is big news for Metaverse, and it’s good news because Microsoft’s acquisition of Activision Blizzard is all about Metaverse.
As any investor who has seen Metaverse knows, Microsoft has been talking for months about Metaverse being the next big thing, and finally backed up its words with action. Microsoft has announced that it will create metaverse versions of Call of Duty and World of Warcraft and combine these games with its Own HoloLens VR headset to create a world-class game called Metaverse.
So Microsoft buying Activision Blizzard is really great news for Metaverse. But, in the following days, the stock market began to crash, and most people seemed to forget about Microsoft’s huge acquisition, which they shouldn’t have done…
Because common sense is one of the surest things in investing. Behind the bull market phenomenon, the vast majority of market participants have achieved a consensus based on common sense expectations. Metaverse was born in a market where investors are struggling to find a new driver to keep the industry moving forward amid pessimism about Internet antitrust policy.
The global dotcom bubble around 2000 is impressive in retrospect, but that hasn’t stopped Internet companies like Amazon, Microsoft, Facebook and Apple from being among the world’s most valuable. Obviously, the enterprise value of these good companies can pass through the impact of the initial bubble burst and embark on the road of long-term value growth. The acceleration of global PC and mobile Internet penetration is the underlying logic and simple common sense that supports their rapid growth in the past 20 years.
When Internet traffic growth peaked and the industry slowed, Metaverse seemed to be synonymous with the next phase of growth. Perhaps the digital age represented by Metaverse will grow as it did 20 years ago, and new high-growth companies will emerge from it, but metaverse may be far more valuable than the mobile Internet. From the field involved, mobile Internet is closely related to the life of netizens, mainly entertainment and consumption; In the future, digital technology will deeply enter all walks of life, and perhaps many enterprises’ production materials will be presented in the form of data assets. For the future development of Metaverse, we can refer to two important voices at the national level in China. One is for the development of the digital economy seriously, stressing the need to stand in the global strategy of the great rejuvenation of the Chinese nation and the world as a whole from the big change in one hundred, the height of overall domestic and international two overall situation, the development of both security events, give full play to the huge amounts of data and application scenario for the advantage, promote the digital technology and the real economy depth fusion, fu to transformation and upgrading of traditional industries, We will foster new industries, new forms and new models of business, and make China’s digital economy stronger, better and bigger.
Secondly, the plan to promote the value of the data, approval and management in 2021, Chinese vice premier liu crane China 5 g + industrial Internet conference pointed out that the data is becoming the key factors of production, to study the classification of different categories of data approval and management, open data transaction flow, configuration, data elements for the reasonable distribution of data elements.
No doubt China sees digitalization as an important engine of economic growth in the future, but what about Europe and the United States? The same is true. From this perspective, the high value contained in the digital economy represented by Metaverse is self-evident. Therefore, how to recognize this development trend is particularly important for grasping future investment opportunities.
Metaverse is also getting a flurry of policy positives
Not only are Internet giants gearing up for Metaverse, but many local governments in China are also scrambling to get in on the action. Metaverse has appeared in recent government work reports and industrial plans in many places. In the economic work Conference of Shanghai Municipal Committee of the CPC held on December 21 last year, it was pointed out that “enterprises should be guided to step up research on important platforms for future interaction between virtual world and real society, and timely layout and entry”, although it did not directly name metaverse. But the expression is believed to be the first positive statement from the local government on Metaverse. Since then, the word metaverse appeared many times in the “14th Five-year Plan for the Development of Shanghai Electronic Information Manufacturing Industry” issued by Shanghai Economic and Information Commission. The plan points to forward-looking deployment of quantum computing, third-generation semiconductors, 6G communications and Metaverse, among other fields.
Since 2022, Wuhan, Hefei and other cities have also “embraced” Metaverse in government work reports. On January 10, Luo Yunfeng, mayor of Hefei, mentioned in the government work report that in the next five years, Hefei will forward-looking layout of future industries, aiming at metaverse, superconducting technology, precision medicine and other frontier fields, to create a number of leading enterprises, cutting-edge technology, high-end products; In his government work report on January 11, Wuhan Mayor Cheng Yongwen proposed to accelerate the growth of the digital industry and promote the integration of Metaverse, big data, cloud computing, block chain, geospatial information and quantum technology with the real economy. On January 8, Shanghai Economic and Information Technology Commission held a meeting to plan the industry and informatization work in 2022, emphasizing the acceleration of the layout of the new track of digital economy, closely related to the city’s digital transformation, the layout of Metaverse new track, development of application scenarios, and cultivation of key enterprises. We will work faster to tackle key and core technologies, develop industries of the future, and make competitive industries bigger and stronger. Sun Taoran, a member of the Beijing Committee of the Chinese People’s Political Consultative Conference and chairman of Lacara Payment Co., LTD., made two proposals related to “Metaverse”, namely, “On seizing the development opportunity of” Metaverse “, Suggestions on Building a new engine of economic growth in the Capital and Suggestions on building Shougang Park into a pilot industrial park for the development of “Metaverse” in Beijing.
Changes are small, but the market attention, related planning and demonstration effect of the personage inside course of study thinks, Shanghai, wuhan, hefei is the development and innovation in the digital economy in recent years has more excellent city, at the government level focus on the development of the metaverse, could trigger following effect, other cities may also be more attention to this, A hundred flowers bloom in the future.
Based on the first batch of 65 new members accepted after compliance review, Metaverse Industry Committee of China Mobile Communications Federation recently released the second batch of 16 new members accepted. To date, 15 publicly traded companies have become accepted members of the Metaverse Industry Council. At the same time, the “Qianli Horse” plan of talent cultivation in Metaverse industry was launched. Based on the comprehensive analysis of capital, industry, government, platform and education, the plan aims to promote the sustainable and healthy development of Metaverse industry and take talent cultivation as a long-term cultivation goal. Train a large number of Metaverse technical and operational management talents.
China’s Ministry of Industry and Information Technology of small and medium business administration bureau chief zhi-feng liang yesterday said at the news conference, to seize the country to promote the new infrastructure, developing digital economy opportunities, by “the guest China” innovation entrepreneurship competition in a variety of ways, such as guide and support small and medium enterprises to accelerate digital industrialization and industrial processes, cultivating a batch of new small and medium-sized enterprises, specialization, industrialization of digital Special attention should be paid to cultivating a group of “little giant” enterprises deeply engaged in the professional fields of industrial Internet, industrial software, network and data security, intelligent sensors and other aspects, and cultivating a group of innovative smes entering metaverse, blockchain, artificial intelligence and other emerging fields.
The current market sell-off gives investors a golden opportunity to buy
Historically, Metaverse has become one of the biggest investment opportunities in the past decade. According to the latest research report of China Merchants Securities, metaverse is undoubtedly the general name of a new round of 5G and 6G applications. Even without the title of Metaverse, we will see the intensive implementation of VIRTUAL people and NFT. Now the metaverse like 15 years, 16 years of musk put forward new energy cars, many people feel incredible, but now the new energy vehicles have rapidly gained popularity, even the most imaginative unmanned, now, it seems, is not out of reach, and we now see, including Microsoft, nvidia, Disney, FACEBOOK has gone crazy with Metaverse, and even its own FACEBOOK has changed its name to META, showing its determination.
On the other hand, the stock market is having a tough time, but every tough time has some unique stock market winners who not only beat the market, but actually make you money while others lose. Metaverse could be one of the best inflation-fighting stocks in 2022.
At this point in time, Wall Street continues to favor the following Metaverse stocks: Intel (INTC.us), Roblox(RBLx.us), Unity(U.U.), WIMI(Wimi.us), Matterport(MTTR.us). The main logic is as follows:
1. The performance and industry status of the above stocks have been consistently proven, with historically low valuations and short-term severe stagflation;
2. The short-term arrival of Metaverse is virtual person and NFT. In fact, VR and AR are the most important applications of Metaverse.
3. In today’s capital markets, investors are more willing to bet on stories, hopes and dreams, and “super growth investing” has become a mainstream investment on Wall Street.
In the long run, accelerating the development of digital economy/Metaverse is one of the important trends in the future. In terms of investment advice, analysts continue to suggest that Metaverse should be arranged in two directions. The first direction is to pay attention to leading companies continuously, such as buying giants such as Microsoft and Apple. The latter already dominates the mobile gaming market and could make a big splash in AR/VR this year with their own VR gear. The second direction is to look for high-growth companies in various segments, such as Roblox, Matterport, and WIMI.