This metaverse ASX share is a buy: expert

It’s not just the company formerly known as Facebook. There’s a Melbourne mob who is lighting the fire of some professional investors.

| More on:
happy family playing video game

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

Shares for electronic games developer Playside Studios Ltd (ASX: PLY) have rocketed more than 50% in the past 2 months after listing a year ago.

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.”

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Rede arrow on a stock market chart going down.
Technology Shares

Why did the Appen share price sink 13% in June?

The Appen share price was sold off again in June...

Read more »

A man wearing a suit and sitting at his desk in front of his computer puts his hand to his forehead in frustration over the delayed Afrterpay takeover
Technology Shares

How did Xero shares do in the 2022 financial year?

The Kiwi software maker has been a favourite among investors over the past 5 years. But how has it done…

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Technology Shares

Top broker picks two ASX 200 tech shares for today’s economy

A top broker has revealed which two ASX 200 tech shares are likely to best withstand weaker demand in a…

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Technology Shares

Xref share price tumbles 19% despite record result for FY22

The HR tech company's share price plunged today despite stellar results.

Read more »

Arrows pointing upwards with a man pointing his finger at one.
Technology Shares

Why did the Fineos share price roar 15% higher today?

This tech share was a strong performer on Tuesday...

Read more »

chart showing an increasing share price
Broker Notes

Could an ‘immense’ opportunity mean the Megaport share price is now a buy?

Is Megaport a tech share to buy due to its immense growth opportunity?

Read more »

Two boys with cardboard rockets strapped to their backs, indicating two ASX companies with rocketing share prices
Technology Shares

These 2 ASX lithium stocks are charging up on Tuesday

What's happening with Global Lithium Resources and Lake Resources?

Read more »

a young woman sits on a sofa in a stylish home with her laptop computer balanced on her knee and smiles with a satisfied look on her face at what she's seeing on the screen.
Technology Shares

Why is the Life360 share price jumping 7% today?

The Life360 share price is rising along with the broader ASX tech sector this morning.

Read more »