Matterport (NASDAQ:MTTR) stock is a company that provides 3D models of real-world spaces. It has a significant impact on how we perceive space and interact with it. With the help of their 3D technology, they have created a new way for people to explore and experience different locations in a way that was never possible before.
Matterport Silicon Valley exterior sign and trademark logo.
Source: Ken Wolter / Shutterstock.com
However, MTTR stock has decreased substantially since debuting through a reverse merger. But, the thing to note is that it has less to do with the company and more to do with the prevailing environment.
The markets are getting spooked due to interest rate hikes and geopolitical tensions. However, it is the right time to purchase several growth stocks at a discount for the risk-tolerant investor.
The metaverse has been a popular topic in the news lately, and companies are investing heavily in the space. Microsoft (NASDAQ:MSFT) has invested in the new technology, and Facebook is now called Meta (NASDAQ:FB) because it focuses on new technologies and this space.
If you have the money, you are doing a disservice by not investing in virtual spaces. We are quickly transitioning from real-world services to more digital systems. As the trend continues, companies that invest in virtual worlds stand to benefit substantially.
Buying Matterport as a metaverse play might seem like it requires a lot of homework. But it’s quite simple. Users are no longer limited to their physical location in the metaverse and can now create virtual copies of real-life buildings with Matterport’s 3D spatial data technology. This will allow them to experience what it would be like to walk through a piece of architecture that they’ve created from elsewhere. As digital transformation continues, now is a good time to invest in MTTR stock.
Time to Future Proof Your Portfolio
Web 3.0 is a term coined by Tim Berners-Lee, the inventor of the World Wide Web in 1989. It refers to the next-generation web, which will be more immersive and personalized.
We already see the impact in the investing world, with companies like Matterport changing the way we work, how we communicate, how businesses are run, and how people live their lives.
Virtual worlds are fascinating because participants have a great deal of freedom. The idea of a virtual world is simple: players create their avatars and build their environment.
Matterport Is Rapidly Growing
Matterport will take advantage of this secular shift in how we do things.
The biggest problem with 3D models for Project Management used to be filter-dependencies that require everyone in the team to be within range of the same device, making it much more difficult to adjust plans on the go and move quickly. On the other hand, Matterport makes it easy for people to interact with this property through their platform. It also makes it easy to capture everything from every angle and detail about the property. You can use this for various purposes, like planning construction projects for a building or trying to sell/rent a property.
As they say, the proof of the pudding is in the eating. Despite being a young enterprise, the company grows by leaps and bounds.
In reporting fourth-quarter and full-year 2021, the company revealed that 20% of its customer base now consists of Fortune 1000 companies. Plus, Matterport doubled its subscriber count in Q4 to over 500k. It also reported a record $16.5 million in revenue, year-on-year growth of 32%.
However, the loss widened $0.10 per share, a substantial increase over last year’s figures. It is because of two major factors. First, the company has had to ramp up its operations, not surprising since its a growing company. Second, the whole world is suffering from supply chain issues. And to secure materials, the company had to pay extra costs. Nevertheless, it weighed down margins.
The Bottom Line
The company has a lot going for it, and its proprietary technology is one of the most interesting in the industry. They have all the potential to become an important player in the metaverse space.
However, MTTR stock hit a price correction because of the investing environment and because the company could not beat earnings estimates. While subscriber numbers were great, the company’s bottom line did not match. At the moment, markets are punishing unprofitable growth stocks, so it’s not surprising MTTR stock is in the place that it is in.
But this is a company with solid growth prospects. And when the supply chain issues clear, the company will be able to have a better handle on costs. In the meantime, you can purchase this great stock at a discount.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
