Since the beginning of the week, spatial data and computing company Matterport (NASDAQ:MTTR) has been on a winning streak. Touted for its metaverse applications, MTTR has attracted the attention of Cathie Wood as well. Yesterday, one of the renown investor’s exchange-traded funds (ETFs) took a position in the company. That large investment has sent MTTR stock soaring. Now investors are watching keenly; this news may signal a turning point in its market trajectory.
Specifically, Wood gained exposure to MTTR stock through the Ark Autonomous Technology & Robotics ETF (BATS:ARKQ). As Markets Insider reports, the fund invested $4.26 million in Matterport, netting a total of 534,829 shares. That makes up 0.25% of the fund’s assets.
News of this investment sent MTTR stock into the green yesterday and the stock only kept climbing. Shares closed up more than 17% today. Although growth steadied in the afternoon, the stock continued to demonstrate momentum.
What’s Happening with MTTR Stock?
Matterport has ignited some controversy among investors. The company came public through a special purpose acquisition company (SPAC) merger last summer. While MTTR stock has declined significantly since then, it has also been hailed as a buy for its metaverse exposure. Matterport offers users the opportunity to create virtual versions of rooms, a feature with a lot of potential for virtual tours and the like.
Of course, Wood has also been a believer in the metaverse since its early stages of development, saying it will “enable a lot of fun and a lot of efficiencies.” From Wood’s perspective, the metaverse has the power to change more than just entertainment and gaming.
Recently, InvestorPlace contributor Christian Docan also made the case that MTTR stock’s upside outweighs the downside. Docan attributes this primarily to company partnerships with Amazon’s (NASDAQ:AMZN) Amazon Web Services (AWS) and names like software giant Autodesk (NASDAQ:ADSK).
Perhaps more important, however, is Matterport’s partnership with Meta Platforms (NASDAQ:FB). The two confirmed a collaboration on “the world’s largest dataset of 3D spaces” in June. Wedbush analyst Dan Ives called for a bullish play on MTTR stock as a result: “We believe this was the first step towards a much broader Facebook and Matterport relationship as Zuckerberg & Co. head down the metaverse path.”
What It Means
The fact that Wood has taken such a large position in MTTR stock shouldn’t be ignored. It signals that the company could indeed become a winner in the metaverse. And, for now, the stock still trades at less than $10 per share.
Stock bulls consider that to be a bargain price. For investors, the recent news marks a key opportunity to follow Wood’s lead and buy Matterport before it climbs again.
On the publication date, Samuel O’Brient did not hold (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.