There are plenty of special purpose acquisition company (SPAC) stocks to choose from nowadays. For something that stands apart from the rest, you’ll want to check out Gores Holdings VI (NASDAQ:GHVI) and if you like the company, maybe even start accumulating shares of GHVI stock.
Actually, you don’t have to like the shell company itself. It’s more important that you believe in the business model of Matterport since that’s the company that Gores Holdings VI is taking public.
So, what’s Matterport and why should anyone invest in this company? We’ll get to that shortly — and we’ll try to figure out why one commentator is calling Matterport a “category killer.”
Keep reading to learn more about a SPAC deal that could change real estate as you know it — but first, a quick glance at the stock’s recent price action.
A Closer Look at GHVI Stock
Admittedly, GHVI stock doesn’t have a lengthy history. Nonetheless, there has been some serious movement in the share price.
During the December initial public offering (IPO), the stock was originally priced at $10 per unit, with 30,000,000 of those units to be offered.
In hindsight, we now know that $10 would have been a terrific buy-up price for GHVI stock. Granted, there wasn’t much movement in the share price until February.
Yet, once the stock started moving, it was off to the races. The rocket ride started on Feb. 4 and didn’t end until the stock hit a 52-week high of $28 on Feb. 19.
However, the share price declined after that. It closed on March 12 at $17, still a substantial gain from the original IPO price.
Digital Twin Technology
Imagine being able to recreate a real estate property with a highly detailed and realistic 3-D model.
Actually, you don’t have to imagine it anymore because it’s possible today and it’s known as digital twin technology. Matterport uses artificial intelligence and deep learning to achieve this.
The company describes itself as “the spatial data company leading the digital transformation of the built world” while asserting that its “market-leading platform turns buildings into data to deliver unparalleled property insights and value.”
Through its groundbreaking digital twin technology, Matterport can create a image of practically any building, even if it’s loaded with complex spatial data.
This image will be dimensionally accurate and photo-realistic. After a year of the Covid-19 pandemic, it’s easy to imagine the appeal of being able to take a 3-D virtual tour of a property.
In the company’s investor presentation, Matterport asserts that there’s a total available market worth $240 billion. The company also calls itself “the clear market leader” that “defined the category.”
A Category Killer
CNBC commentator Josh Brown took this praise a step further, calling Matterport a “category killer.”
“This is the first time I’m buying a SPAC that’s already announced a deal at a premium, so I’m pretty excited,” Brown revealed.
That’s awfully high praise, and while my assessment of GHVI’s upside potential is more measured than Brown’s, I can still see where he’s coming from.
Matterport’s investor presentation cites the company’s estimated 18x subscriber growth. It also reports the company’s $100 million run-rate revenue, 10 billion square feet captured as well as Matterport’s market presence in 150+ countries and counting.
So, yes, I totally get it. Matterport is the niche category leader. Is it a category “killer”? I’m not sure if traditional real estate methodologies will be entirely disrupted, but it’s a possibility worth considering.
The Bottom Line
Brown might be prone to a bit of hyperbole in calling Matterport a category killer.
Nevertheless, his point is well taken. Matterport’s state-of-the-art technology is at least category defining, and investors should still consider GHVI stock a more-or-less ground-floor opportunity.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.