The metaverse is proving to be a space of incredibly high interest. It caused Facebook to rebrand to Meta Platforms (NASDAQ:FB). Crypto metaverses like Decentraland (CCC:MANA-USD) and Sandbox (CCC:SAND-USD) are cropping up left and right. And now, it looks like other big tech firms are becoming infatuated with the space. Baidu (NASDAQ:BIDU) is one such company looking to secure a seat at the table. But, as it turns out, it’s less ready for the metaverse than it had previously anticipated. BIDU stock might be a metaverse play for investors, but it’s a longer-term bet.
Founded in 2000, Baidu has become one of the biggest tech plays in China. The company’s search engine is one of the most used in the world, and like its American counterpart in Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), it is always looking into new ways to beef up its products.
The metaverse is one of the newest and most rapidly growing technologies in the world. And as such, it’s a ripe space for companies like Baidu to enter.
BIDU Stock Eyes Metaverse Catalyst Far Down the Road
In a way to compete with both decentralized and centralized metaverse spaces, Baidu is promising a metaverse of its own. However, this particular BIDU stock catalyst is much further off than the company first promised.
On Dec. 10, Baidu made the bombshell announcement that it was going to have a metaverse ready by the end of the month. The bullish announcement included promise of a virtual event that would accommodate up to 100,000 attendees. This event would be held through its new metaverse app, Xirang.
As the end of the month approaches though, it’s looking like Baidu has a lot more work in store. The Xirang app is not fully developed. Not only this, but it’s actually years away from being fully ready. Baidu’s Vice President, Ma Jie, is breaking some hard news to investors.
Ma says the company will need at least six years to fulfill its promise of a robust metaverse. Ma also says the app will not support the cryptocurrencies and digital property assets ubiquitous to other metaverse platforms. This isn’t terribly surprising, given the Chinese government’s harsh stance on these types of assets.
Of course, this is jarring news for investors to digest, especially after a surprise announcement that promised so much, so soon. Investors should note, however, that Xirang did launch today and did host a developers conference in the app. Betting on the BIDU stock metaverse then is just a long-term play.
On the date of publication, Brenden Rearick 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.
