Digitizing the “built world” is the business of California-based spatial data company Matterport (NASDAQ:MTTR). Folks who’d like pure-play exposure to the burgeoning metaverse can consider adding MTTR stock to their portfolios.

Just be advised that Matterport’s technology is new and that means there will be risks involved with it. However, the potential rewards could be extraordinary; just consider the gains made by some people who invested in e-commerce companies 20 years ago.

Perhaps MTTR stock could provide similarly outsized returns. It’s possible, as Matterport already has a presence in roughly 170 countries and boasts 6.2 million spaces under management.

As we’ll see, Matterport is even pushing the digital envelope by providing vast, new experiences in the retail sector. It’s exciting to consider, but don’t forget to keep an eye on Matterport’s financial data, which has both positive and negative surprises.

A Closer Look at MTTR Stock

Let’s start with a quick historical overview and some technical analysis. Following a merger with special purpose acquisition company (SPAC) Gores Holdings VI, Matterport began trading on the Nasdaq on July 23, 2021.

MTTR stock rallied soon after its debut, catapulting from $14 in July to a peak of $37.60 in November. As the hype phase wore off, however, the stock declined sharply.

By the afternoon of Jan. 5, 2022, Matterport’s share price had already sunk to $16 and change. That day, the stock was down 10% despite the lack of company-specific news (though the Nasdaq was 1.4% in the red, so that may have been a contributing factor).

Clearly, MTTR stock is a fast mover in both directions. So please, only take a small position size if you plan to invest in Matterport.

Creating Showrooms, Virtually

Since Matterport is an innovator in developing the “built world,” it’s not surprising that the company is bringing this world to a broad variety of people, including non-experts.

As an example of this, Matterport is now powering new experiences for the retail space, including customers.

Using Capture Services On-Demand, Matterport Pro2 cameras and/or the Matterport Smartphone app, retailers can now create virtual showrooms.

They can also curate shoppable digital experiences that integrate e-commerce, while also making their store operations more efficient.

Vice President of Business Development Conway Chen explained how retailers can use Matterport’s technology in a variety of ways.

Apparently, they can create a “virtual showroom where consumers can shop for holiday gifts or using digital twins to remotely manage store design and operations.”

Their customers, meanwhile, can “visit their favorite store virtually and see merchandise presented in a real space, as if they were walking through an actual showroom.”

Good News, Bad News

The idea of shopping through virtual showrooms is pretty awesome. Matterport is truly on the leading edge of new, intriguing, virtual-world creation.

However, prospective MTTR stock investors shouldn’t just focus on exciting ideas. After all, Matterport is a business, and turning a profit is objective number one for it.

Unfortunately, that’s where the company falls short. Granted, Matterport is capable of generating revenues. In fact, the company reported $27.65 million of sales last quarter, representing a slight, year-over-year increase.

Now let’s turn to Matterport’s bottom line. During the first three months of 2021, the company incurred a GAAP net earnings loss of nearly $168 million.

In contract, Matterport posted GAAP net earnings (a gain, not a loss) of over $900,000 during the equivalent, year-earlier period.

So it’s evident that Matterport is moving in the wrong direction when it comes to its bottom line. Going forward, the company should seek ways to increase its revenues and/or reduce its expenditures.

The Bottom Line

At the end of the day, MTTR stock is a speculative wager on the growth of the metaverse.

It’s an all-or-nothing bet, much like e-commerce businesses were 20 years ago. Could Matterport succeed like some e-commerce companies did?

Anything is possible in the tech world, but don’t bet your house and car on MTTR stock. It’s more sensible to take a small position and then sit back and watch as Matterport develops fascinating “built worlds” in 2022.

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.