Metaverse has been the hot word in technology this year, culminating in Facebook’s corporate renaming to Meta Platforms Inc (NASDAQ: FB) in late October.
The term describes the next stage of internet computing where a combination of virtual reality, augmented reality and video technologies immerse users into a digital “universe”.
It may surprise you that there are already ASX shares that represent businesses that deal with the metaverse.
And one of those has been labelled a “buy” this week.
One of my “favourite” metaverse companies: expert
So much so that the stock now trades at more than 4 times the initial public offer price of 20 cents per share.
For Red Leaf Securities chief executive John Athanasiou, as one of his fund’s “favourite” metaverse companies, Playside is a buy at the moment.
“The video game developer has a growing client base,” he told TheBull.
“The company is at the forefront of blockchain gaming, and recently completed a $28 million capital raising, which enables it to pursue metaverse opportunities.”
Cyan portfolio manager Dean Fergie has publicly mentioned multiple times over the past year that Playside is set to boom.
He said in August that its cash flow is good and its dual business of outsourcing services and original games development is “performing outstandingly”.
“The company has an exciting 12 months ahead with the upcoming release of several new games including titles based on blockbuster movies Legally Blonde and The Godfather, which should contribute to a material uplift in revenues in FY22.”
Last month the Melbourne company signed a work-for-hire agreement with global giant 2K Games to develop games on their behalf.
PlaySide chief Gerry Sakkas said at the time that it was the largest outsourcing deal for the company since its ASX listing.
“We are excited to be working with 2K Games, a label from one of the world’s largest publishers, Take-Two Interactive Software (NASDAQ: TTWO).
“Our ability to secure this agreement with 2K Games underlines our position as Australia’s largest publicly listed game developer.”