The ‘metaverse’ would have certainly earned its place on a list of ‘top investing buzzwords of 2021’. Assisted perhaps by the dramatic name change of what used to be known as Facebook Inc into Meta Platforms Inc (NASDAQ: FB), the metaverse is a concept that has now arguably taken root in the collective investing consciousness.
Facebook is so meta right now…
Meta founder and CEO Mark Zuckerberg probably deserves much of the credit. Back in October last year when ‘Zuck’ first announced the company’s rebranding, he called the metaverse “the beginning of the next chapter for the internet”. Here’s some more of what Zuckerberg had to say on the metaverse and his company’s place within it at the time:
The defining quality of the metaverse will be a feeling of presence — like you are right there with another person or in another place. Feeling truly present with another person is the ultimate dream of social technology. That is why we are focused on building this.
In the metaverse, you’ll be able to do almost anything you can imagine — get together with friends and family, work, learn, play, shop, create… As well as completely new experiences that don’t really fit how we think about computers or phones today.
Our role in this journey is to accelerate the development of the fundamental technologies, social platforms and creative tools to bring the metaverse to life, and to weave these technologies through our social media apps.
So that all sounds pretty rosy. But many forward-looking investors are not waiting to experience the metaverse. They are looking to invest in it at an early stage as well.
As you might expect, the ASX is not home to too many metaverse companies. At least not yet. But new data from brokerage platform eToro shows exactly how keen ASX investors are to carve themselves a slice of the meta-pie.
ASX investors can’t get enough of the metaverse
eToro’s share trading data for the fourth quarter of 2021 shows a significant increase in investor interest in Meta, which aligns quite conveniently with its October meta-centric rebranding. No, Meta Platforms did not usurp the perennial investor favourites of Tesla Inc (NASDAQ: TSLA) or Nio Inc (NYSE: NIO). But eToro’s data does show that Meta Platforms jumped from thirteenth place in the previous quarter to sixth place for the last quarter for Aussie investors.
eToro global markets strategist Ben Laidler cited Meta’s repositioning as the main factor here:
The firm has ditched the Facebook moniker and hitched its wagon to the fledgling metaverse sector, which is starting to cause real excitement among many investors.
The metaverse is a huge growth opportunity and the fact that Meta has thrown its brand and resources behind it will be a big catalyst for its development. And while it is not the only company exploring this area, it will no doubt be one of the major players.
So it looks as though ASX investors can’t get enough of the metaverse and, by extension, Meta Platforms shares. It will be interesting to see how this trend continues to grow in 2022 and beyond.