- Matterport (MTTR) stock has come under persistent selling pressure despite the company’s achievements.
- The stock could find a floor soon as more businesses discover the potential of spatial data and built worlds.
- Risk-tolerant investors should consider a small stock position in Matterport.
California-based Matterport (NASDAQ:MTTR) is a spatial data company that seeks to digitize what is known as the “built world.” MTTR stock represents more than your typical wager on the metaverse and investors ought to start accumulating the shares if they can handle the risks involved.
Of course, it is always risky to invest in a new, emerging technology. The internet was new and relatively undeveloped in the early 1990s, but it created a windfall for early-stage investors — and the same thing could happen with spatial data technology.
Matterport is on the leading edge of this movement, but Wall Street doesn’t seem to appreciate the company’s potential. Or perhaps investors can’t envision a bright future for digital-twin tech — and they might end up missing out on a huge opportunity.
What’s Happening with MTTR Stock?
As you may recall, Matterport began trading on the Nasdaq exchange on Jul. 23, 2021, after a reverse merger with special purpose acquisition company (SPAC) Gores Holdings VI.
It is actually shocking to consider how poorly MTTR stock has performed. Since the stock’s Nasdaq debut, it has fallen from $14 to just under $7. Given this frustrating price action, one might be tempted to assume that Matterport hasn’t made any progress as a business. Yet, this couldn’t be further from the truth.
Indeed, the company’s fourth-quarter (Q4) 2021 results reveal that Matterport increased its total subscriber count year-over-year by 98%. Also during Q4 2021, Matterport’s subscription revenue grew 47% year-over-year.
Impressively, Matterport can boast more than half a million subscribers. Clearly, there are businesses out there with strong interest in built worlds and digital twins. Moreover, Matterport has recorded 6.7 million spaces under management. Evidently, the built world is building out. Yet, this begs a crucial question: Who’s using digital twin technology, anyway?
Spatial Data Tech’s Many Uses
The answer, potentially, is that businesses of all stripes can use digital twin tech. Like the internet, built world technology could become much more commonplace. Naturally, this would have a positive effect on MTTR stock.
Maybe it is difficult to envision how Matterport helps its clients. In a press release, the company used a real-life example to illustrate the built world’s potential to improve business outcomes:
“One customer […] used Matterport Axis to create digital twins to document insurance claims. By using Matterport Axis with the Capture app and other Matterport solutions… adjusters reduced their time spent in the field, improving its total claims cycle time by 15 percent, and increased new customer acquisition by 200 percent with the convenience of their smartphone.”
Are you starting to “get the picture” now? Matterport helps its clients leverage the power of spatial data technology and the results keep them coming back.
In another example, Dutch-owned shipbuilding company Damen Shipyards Group is using Matterport’s technology as a collaboration and engagement tool.
“[W]e use Matterport to allow our customers to remotely review and inspect every compartment and detail of a vessel within a 3D space,” clarified Damen Shipyards Assistant Project Manager Jan-Jaap Eits.
If Matterport’s solutions can be used by insurance companies and shipbuilders, where else might we see these solutions in the near future? The answer, really, is here, there and everywhere.
What to Do With MTTR Stock
The best strategy isn’t to over-leverage yourself with MTTR stock. After all, Matterport is working with a new and emerging technology, so there are risks involved.
Nevertheless, a small position in the stock is perfectly fine. Right now, you have an opportunity to get in on the ground floor of the digital twin revolution. It is not fully developed today, but soon it could be almost everywhere.
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.