Swaggy's Top Stonks - How to play Metaverse stocks
Swaggy's Top Stonks - How to play Metaverse stocks
Swaggy’s Top Stonks. We compile and analyze data from multiple sources bringing you the top trending tickers from around the internet. If you haven’t subscribed already, please do so below.
Swaggy's Top Stonks
November 14, 2021
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Facebook and the "metaverse" have been hot topics recently. Is the metaverse really the future? It very well could be. As much as he may be disliked Zuckerberg does not miss when it comes to launching new products. Whether it's an acquisition or in-house project he's built an empire on his genius and not many would be able to do what he has done.
Today I'll discuss about various ways to potentially play metaverse stocks and what industries they encompass.
Today's Letter
Market Update
Metaverse Stocks
Earnings SZN
Trending Tickers
Market Update
Elon Musk is one of the greatest Internet trolls to ever exist. Also, by now almost everyone's heard of new policies that would impose taxes on billionaires' unrealized capital gains. Last weekend, Elon being Elon he tweeted about the justice of this new policy and proposed selling 10% of his Tesla stock saying he would "abide by the results of this poll, whichever way it goes".
Selling billions in stock based on an Internet poll? Sounds kinda suspect, but I love to see it.
This week shares of Tesla were down roughly 13% on the news and it turns out Elon sold roughly 6.9 (nice) billion in Tesla stock this week.
Moving along, just this morning Elon Musk was trolling Bernie Sanders on Twitter. Here's the (one-sided) exchange.
The interesting thing I'm seeing is that it seems most of the population on the Internet are actually siding with billionaires over politicians. Maybe it's just with Elon, but maybe we'll begin to see a lot more of the world's richest begin utilizing social platforms to increase their like-ness.
Investing in the Metaverse
Even the term "metaverse" alone may be confusing to just about everyone. I'm sure there are plenty of people thinking the metaverse "is the future" without really knowing exactly what it is. That's because this is unfamiliar territory for humans and there are no products or experiences we can really compare it to other than some kind of virtual reality (VR) headset.
If you watched Zuckerberg's presentation you may have been left confused by the end of it. He goes on to explain how the metaverse will enable people to connect like never before and uses his virtual conference room as his main example. It's like Zoom, right? Not quite. So what really is the metaverse?
The metaverse is a digital space where users will be able to interact with each other in real-time. In my opinion, it won't completely replace the way we currently live, the way we use the Internet, or search Google, for example... But it will provide users with an immersive way to hang out with their friends, remotely.
At the moment, a lot of the metaverse's uses are based on speculation. How will it really work? Just as how the Internet itself was highly speculative in the 90's we find ourselves turning a similar corner. Here are a few ways I think people will be able to use the various applications of the metaverse.
You're trying to plan a vacation, but before you make any reservations you're able to do a virtual tour. In the metaverse you can put on your VR headset and completely submerse yourself in a digital space of your vacation hotel room, on the beach, etc. You would be able to sample your vacation, before you book it.
Imagine you're at home working. Instead of working on your laptop you enter the metaverse. In this digital world you can summon as many computer screens as you need and even join your friends to work in the same room. Sensors would track your fingers for typing and hand gestures for moving digital documents around your workspace.
Lastly, the metaverse will allow you to escape your current reality and live in an upgraded version. Imagine you are in your apartment (your mom's basement) eating Kraft dinner, but you just know there is a more boujie lifestyle out there for you -you deserve better. After putting on your VR headset you are instantly transported to a new apartment, this time it's on a mountainous home in Beverly Hills with a sunset in the distance. Just make sure when you bring your date home they put on the VR headset before stepping through the garage door.
What people think the metaverse will be:
What it will really resemble (both images are computer-generated):
So which players are set to benefit from this new digital world? In my opinion, here are a few.
1. Ecosystems, Environments, and Models (3D Models, not Victoria's Secret)
Players in this space will be the creators of the world. Producing the environments and the e-objects you interact with. Think video-game-like high-resolution objects.
Unity (U)
Roblox (RBLX)
Adobe (ADBE)
2. Virtual Reality Enablers
The enablers are going to be the platforms that provide the metaverse service. Each brand will most likely have their own versions of it with different utilities.
Facebook (FB) -> soon to be Metaverse (MVRS)
Snap (SNAP)
Disney (DIS)
Matterport (MTTR)
3. Virtual Currency
Fiat and the USD will always be the gold standard, but why be normal when you can implement crypto-currencies that have their own internal use as well. There are thousands of crypto projects, but some of the top ones that come to mind are:
Bitcoin (BTC)
Ethereum (ETH)
Solana (SOL)
Chainlink (LINK)
Polygon (MATIC)
4. Marketplace
Every virtual world needs a marketplace to drive the economy. Buy, sell, or trade digital upgrades and NFTs. Companies that might have first-mover advantage here (due to the amount of users they have) are:
Coinbase (COIN)
Facebook (FB)
Robinhood (HOOD)
Disney (DIS)
5. Computing Power
What else does the metaverse need? Absolutely massive amounts of power for servers, data-processing, and high-performance computing. The entire chip-sector will face secular tail-winds, but some of the top names that come to mind are:
Advanced Micro Devices (AMD)
Nvidia (NVDA)
Qualcomm (QCOM)
Taiwan Semi's (TSM)
It could be we are approaching a digital revolution. I was never really sold on the whole metaverse and VR/AR stuff, but now I am looking forward to what the next several years hold for us.
Earnings SZN
Another jam-packed week of earnings. Here's what's reporting.
Monday
Oatly (OTLY) - BMO
Butterfly (BFLY) - BMO
Lucid Motors (LCID) - AMC
Tuesday
Walmart (WMT) - BMO
Home Depot (HD) - BMO
Sea Limited (SE) - BMO
Jumia (JMIA) - BMO
D-Local (DLO) - AMC
Wednesday
Target (TGT) - BMO
Baidu (BIDU) - BMO
iQIYI (IQ) - BMO
Nvidia (NVDA) - AMC
Thursday
Alibaba (BABA) - BMO
JD (JD) - BMO
Applied Materials (AMAT) - AMC
The Take
I'm cautious going into earnings. The last several weeks offered companies that were still performing very well, yet share prices got blown up. I'm keeping an eye on some Chinese names reporting mid-week, BABA and JD to be specific. Many Chinese stocks are under-valued due to the uncertainties surrounding regulations being imposed. Keep in mind China's "Singles Day" was absolutely huge for BABA and JD so keep an eye on these names during the week.
WallStreetBets - Most Mentioned Equities
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