- Unbelievably, Matterport stock has broken below its original share price.
- The stock is still a premier, pure play on 3D virtual worlds and the metaverse.
- Investors should take a serious look at Matterport before Wall Street finally favors the company.
California-based Matterport (NASDAQ:MTTR) is a spatial data company that seeks to digitize the “built world.” If you have a few spare dollars and any belief in the metaverse whatsoever, then MTTR stock definitely should be on your radar.
With built worlds and virtual reality being red-hot in 2022, you’d think that MTTR stock should be soaring now. Yet, Matterport’s loyal investors are undoubtedly disappointed with the stock’s recent performance.
Yet, as we’ll see, Matterport is demonstrating its value as a builder of worlds around the world. Perhaps, then, a buy-and-hold investment in Matterport could leverage the power of virtual worlds for some hefty, real-world gains.
What’s the Matter with MTTR Stock?
Whenever a SPAC stock goes below $10, that can be considered to be a bad sign. MTTR stock recently fell below $10 and also declined below its Nasdaq debut price of $14.20 from July 23 of last year.
The technical damage has been done, but there is no need to panic-sell the stock. Let’s first consider the factors that may have contributed to the share-price decline.
For one thing, SPAC mania was happening in 2021, as well as meme-stock euphoria. As those trends faded, some traders abandoned SPAC stocks and high-growth stocks in general. There is also the “tech wreck” which started in November of last year. Surely, this contributed to the decline of Nasdaq-listed stocks in general, and of MTTR stock in particular.
These aren’t company-specific problems, so there is potential for a swift comeback. After all, the metaverse is gaining acceptance in popular culture and Matterport is among the most ambitious competitors in this niche market.
How ambitious? Matterport boasts 6.7 million spaces under management, 503,000 subscribers and $108 million in annualized run-rate revenue — not too shabby, you must admit.
More Subscribers, More Revenue
More and more, Matterport is proving that the world building business is going global.
For instance, the company is currently leveraging strategic partnerships to expand its presence in the Brazilian market. There, Matterport will offer its spatial data platform to enterprise customers in the architecture, engineering and construction markets.
Being a global innovator isn’t always easy, but it certainly can be lucrative. Matterport is proving this through the company’s fourth-quarter (Q4) 2021 results, which should quell any metaverse skeptic’s concerns.
The numbers are indisputable. In Q4 2021, Matterport nearly doubled its total subscriber count year-over-year — the specific growth figure is 98%. Also during Q4, Matterport’s subscription revenue, which is the lifeblood of the company, increased 47% year-over-year.
Interestingly, 52.6% of Matterport’s Q4 2021 new Android subscriptions came from Europe. So, again, global growth will help to clear the company’s runway to future revenue.
What You Can Do Now
We have witnessed sharp increases in the company’s subscriber count and revenue. So, what more does Wall Street want from Matterport?
In time, the investing community should start to favor MTTR stock. As the public learns more about digital twins and built worlds, this will benefit Matterport.
In the final analysis, then, there is a ground-floor opportunity with Matterport for anyone who wants to invest in the burgeoning metaverse.
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.