If you were to judge California-based spatial data company Matterport (NASDAQ:MTTR) solely by the price action of MTTR stock, you might conclude that this is a business in deep trouble. Yet, is it possible that there’s a disconnect between the share price and the true value of the company?
It’s definitely possible, but it requires a futuristic vision to see Matterport’s full value proposition. Consider, for example, being able to instantly turn any home, high-rise or hotel into a digital twin with
your smartphone.
This is the power of 3D capture technology, and Matterport operates on the leading edge of this field. And that’s not all that Matterport does. But MTTR stock is in the gutter, completely ignored by Wall Street.
Sometimes, however, we have to look in the gutter for the market’s hidden gems. For audacious Matterport investors, it’s mind over matter as a low share price can often conceal surprisingly high value.
A Closer Look at MTTR Stock
Before we jump headlong into the future, let’s briefly analyze the past. Following a special purpose acquisition company (SPAC) merger with Gores Holdings VI, Matterport began trading on the Nasdaq on July 23, 2021.
MTTR stock rallied soon after its debut, vaulting from $14 in July to a peak of $37.60 in November. This likely happened because Matterport’s 3D renderings of physical spaces was a high-demand service, especially as Covid-19 accelerated the adoption of digital universes.
The excitement wore off in late 2021, though, and folks who chased the stock in the high $30s were promptly punished. As it turned out, December and the first half of January were harsh on loyal Matterport shareholders.
At this writing, MTTR stock had declined to $11 and change. In effect, this is an opportunity to turn the clock back and buy the stock at mid-2021 prices.
‘Virtualizing’ the Physical World
With 6.2 million spaces under management, Matterport is an emerging leader in the metaverse, 3D rendering and digital-twin technology. Furthermore, with a recent acquisition, Matterport is quickly expanding its presence in the broader digital-twin market.
Not long ago, the company acquired Enview, which provides scalable artificial intelligence (AI) for 3D spatial data. Admittedly, Matterport paid a hefty price for Enview: 1.59 million shares of Matterport’s Class A common stock and $35.5 million in cash, to be specific.
Yet, consider what the company is getting from this deal. Enview’s technology can perform multiple 3D spatial operations. These range from object recognition, feature extraction and feature-based change detection to 2D and 3D measurement and attribution.
Moreover, Enview’s AI platform helps clients “virtualize” the physical world while delivering critical insights. The technology can help to protect people and infrastructure, and even enhance national security.
Delivering Results
Notably, Enview received a Phase III Small Business Innovation Research award from the Commander of the U.S. Pacific Air Forces. Plus, Enview earned a Phase II award from the U.S. Army Rapid Capabilities and Critical Technologies Office.
So, Enview could turn out to be a value-added acquisition for Matterport, even if it cost a pretty penny.
Clearly, Matterport is serious about developing the digitized “built world.” As further evidence of this, Matterport revealed the results of its collaboration with the company’s technology platform partner, Allseated.
Together, Matterport and Allseated are transforming the modern event planning industry. To break it down simply, Matterport’s digital twins help to create “virtual venues.” Consequently, Allseated can showcase event spaces and book events without the need for on-site meetings.
The result has been a 30% “increase in sales for Allseated hospitality clients investing in digital twin-based virtual venue tours and space planning tools.”
This collaboration has also yielded 60% “greater operational efficiency for venues and event professionals,” who “save 2.5 hours in time spent diagramming and managing day-of set up errors.”
The Bottom Line
A survey of the results that Matterport can help deliver proves that the company offers tremendous value. Yet, somehow Wall Street doesn’t seem to perceive that value in early 2022.
Is this a problem, or an opportunity? It depends on your vision for the future of built worlds, virtual spaces and digital twin technology.
If you’re on board with this futuristic vision, then a position in MTTR stock could yield outstanding returns in the long run.
On the date of publication, David Moadel 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.
