5 ASX Companies to Watch as Lucrative Metaverse Takes Shape

Highlights

  • The metaverse is an online virtual world, where the user is immersed in the internet as opposed to experiencing the internet through a screen or monitor
  • Bloomberg Intelligence estimates that the global market size for the metaverse could potentially reach a whopping $US800 billion by 2024
  • Currently, there are only a handful of companies available in the ASX that offer exposure to this emerging technology.

Last month, a monumental step was taken in ushering in the next incarnation of the internet. Chief Executive and founder of Facebook (now rebranded “Meta”), Mark Zuckerberg, announced in late November that the metaverse would steer the next chapter of the internet.

Although the metaverse is not a new concept, Zuckerberg’s announcement put the concept into the mainstream collective consciousness and sent investors on an urgent search to get in early on the technology, which is still in early development.

What Is Metaverse?

To put it simply, the metaverse is an online virtual reality (VR) world, where the user is immersed in the internet as opposed to experiencing the internet through a screen or monitor.

The concept has existed for a number of years with the Oculus Rift VR headset launching in 2016.

Since 2016, the Oculus Rift has evolved into the Oculus Quest 2, which has redefined gaming and makes it possible for people to have online meetings using their avatar (a digital online persona).

It is these VR worlds which constitute the metaverse – an online place where people can live in a virtually programmed and developed world.

This has enormous implications for entertainment, commerce and even defense. In fact, Bloomberg Intelligence estimates that the global market size for the metaverse could potentially reach a whopping US$800 billion by 2024.

So far, there are only a handful of companies available in the ASX that offer exposure to this emerging technology. Of course, many more will emerge if demand soars, which seems inevitable at this point.

Here are five of the best metaverse-related companies currently available on the ASX.

PlaySide Studios (ASX:PLY)

Share price as of 7 December 2021: AU$0.797

Launched in 2011, this Melbourne-based company boasts a portfolio consisting of 52 titles delivered across 4 platforms: Mobile, Virtual Reality, Augmented Reality and PC.

PlaySide have partnered with several Hollywood Studios as well as leveraging investment in Esports – a huge growth area of the gaming industry.

In November, the company raised capital, which a part of would be dedicated to blockchain gaming space, linked to the metaverse.

Vection Technologies (ASX:VR1)

Current share price as of 7 December 2021: AU$0.145

VR1 has been working on its technology to deliver virtual reality solutions to a wide range of industries from media to real estate and even defense.

In November, VR1 unveiled its FrameS Metaverse release and also completed a AU$12 million capital raise.

The new technology allows organisations to develop 3D/VR immersive metaverses where users can inhabit from anywhere in the world.

VR1, which has grown 114.29% in the past six months, appears to have a long-term commitment to the space, which means it’s definitely one to keep an eye on.

Indoor SkyDive Australia Group (ASX:IDZ)

Current share price as of 7 December 2021: AU$0.065

Indoor SkyDive Australia will soon change its name to XReality Group (ASX:XRG) to better align with its long term vision and growth strategy. This was bolstered by the recent acquisition of Red Cartel - an Australian VR entertainment production and defence studio.

The development of a new division, called Operator Tactical Solutions will develop simulations designed for training for defense organisations and law enforcement agencies worldwide.

The year-to-date growth of IDZ is an impressive 540%.

Aerometrex Ltd. (ASX:AMX)

Current share price as of 7 December 2021: AU$0.680

Aerometrex has over 40 years of experience in aerial imagery and mapping and 3D modelling.

It was recently thrust into the metaverse space following the $250,000 sale for a 3D image contract of the city of San Francisco for use in a proprietary metaverse.

This push into the metaverse is a new direction for the company and could well make it one to watch out for.

iCandy Interactive Limited (ASX:ICI)

Current share price as of 7 December 2021: AU$0.135

iCandy Interactive is a Melbourne-based company, which develops and publishes mobile games and digital entertainment worldwide.

iCandy’s games are played worldwide and have created games that have been on Google Play’s and Apple Appstore and have received several awards in various coveted international events.

The company recently announced the acquisition of Lemon Sky Studios, which the company says will help the group push towards building the extended metaverse.

The Verdict

The selection of metaverse-related companies on the ASX may be sparse right now, but that is almost certain to change as this technological revolution takes hold. In the meantime, these five companies could represent an opportunity for investors to get a jump on the metaverse before it explodes.

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