Since news broke of the omicron Covid-19 variant, speculation has cast a shadow over the stock market. Investors generally hate uncertainty, and without information about the newest strain, it is hard to know exactly what comes next. Today, many on Wall Street have channeled that uncertainty into vaccine stocks. But there are other sectors that stand to benefit from the omicron variant. In fact, one analyst named 3D printing company Matterport (NASDAQ:MTTR) as a “top buying opportunity” among tech plays. MTTR stock has reacted well so far as a result.
What’s Happening With MTTR Stock
Since the report came out this morning, MTTR stock has shot up amidst heavy trading. As of this writing, shares have risen by more than 21%, and their upward trajectory shows no signs of ceasing. The month of November has been an overall positive one, with gains surpassing 74%.
The month’s growth patterns can be mostly attributed to Matterport’s ties to the fast-growing multiverse. In his report, Wedbush analyst Dan Ives touted the potential for growth among tech stocks during Covid-19 variant scares, particularly for companies operating in the cloud, cybersecurity and 5G spaces. He noted that the emergence of new variants reinforces the notion that companies will continue to be dependent on cloud technology. In other words, we will likely need flexible and hybrid remote workforces for years to come.
And while Matterport is intriguing for its involvement with 3D printing, there’s a metaverse-specific reason it made Ives’ list.
Why It Matters
Ives’ logic regarding the tech sector is well founded. The rise of the omicron variant should serve as a good reminder that the reliance of businesses upon cloud technology is not going away, regardless of where case levels currently stand. As companies struggle to fully grasp what these trends may mean for their futures, emerging metaverse technology provides an opportunity for companies to move operations such as meetings and conferences to the digital realm.
The metaverse is most frequently associated with gaming, but investors would be well served to remember its utilities extend far beyond entertainment. For anyone seeking a bullish opportunity, MTTR stock is absolutely worth watching.
InvestorPlace contributor David Moadel recently made a bullish case on why investors should bet on MTTR stock. Its growth has been high today, but the company has been seeing subscriber growth rise considerably. That’s just the tip of the iceberg, too. It has been reported that Matterport is exploring opportunities to partner with Meta Platforms (NASDAQ:FB) to create the “largest-ever data set of 3D indoor spaces.” That detail brings us back around to the potential for the stock as an omicron variant breakout play flagged by Ives.
What It Means
While data is still emerging regarding the omicron variant, stocks have been quick to react to the news of its developments.
Right now we’re in a period of uncertainty. As Ives has highlighted, though, that could mean a buying opportunity for stocks poised to break out in the future as more details emerge. Regardless of the severity of the variant, MTTR stock is worth watching.
On the date of publication, Samuel O’Brient 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.com Publishing Guidelines.