MAGT, FOBI and POET: 3 Canadian metaverse stocks to buy instead of FB?

Highlights

• Stocks of Meta (NASDAQ: FB, FB: US) galloped by over 18 per cent in the after-market hours on April 27.
• Canadian stocks exploring metaverse like Magnet (TSX: MAGT), Fobi AI (TSXV: FOBI),  and POET (TSXV: POET) can gain some traction.
• A company listed below reported a revenue of US$ 21.4 million in Q2 2021, a YoY rise of 37 per cent.

Stocks of Meta Platforms (NASDAQ: FB, FB: US) galloped by over 18 per cent in the after-market hours on Wednesday, April 27, in the light of its financial results for Q1 FY2022.

Meta founder and CEO Mark Zuckerberg said that the company recorded progress in some of its key priority areas and is confident about the opportunities and growth that its products will unlock in the long run.

The social media giant said that it aims to go beyond two-dimensional screens and is exploring the metaverse to provide an immersive user experience.

Canadian stocks exploring metaverse like Magnet Forensics (TSX: MAGT), Fobi AI (TSXV: FOBI), and POET Technologies (TSXV: PTK) can also gain some traction with Meta's quarterly results.

Let us have a quick glance at these three Canadian stocks.

Magnet Forensics Inc (TSX: MAGT)

Magnet Forensics is a Canadian company that develops digital investigation solutions across 90 countries. The company was recognized as a leader in the "IDC MarketScape" for its cloud computing solutions in the Worldwide Digital Forensics in Public Safety 2022 Vendor Assessment.

The digital forensic company reported a revenue of US$ 21.4 million in Q2 2021, a YoY rise of 37 per cent. However, the technology company saw its net profit decrease by US$ 3.7 million YoY to US$ 0.8 million in the latest quarter.

Stocks of MAGT sank by over 28 per cent year-to-date (YTD) and closed at C$ 23.52 apiece on Wednesday.

Fobi AI Inc (TSXV: FOBI)

Fobi AI launched Investor Pass, a communication and marketing platform, on April 21. It is a multi-faceted platform that utilizes the company's artificial intelligence (AI), Big Data and Mobile Wallet techs to enhance investor relations and communications.

In March, the firm also launched a "CheckPoint Venue Access Management" system, automating the registration and sign-in process.

FOBI scrip plummeted by approximately 55 per cent in the past 12 months and closed at C$ 0.71 per share on April 27.

Also read: Teck (TSX: TECK.B) stock takes off after Q1 results. Buy call?

POET Technologies Inc (TSXV: PTK)

POET Technologies, a semiconductor technology company, reported a net loss of US$ 3.69 million in Q4 2021 compared to US$ 3.46 million a year ago. 

The company said that it ended the fourth quarter of 2021 debt-free and posted US$ 21.3 million in cash and cash equivalents (CCE) and short-term investments as of December 31, 2021.

POET stock decreased by over 14 per cent in a year and closed at C$ 8.22 per share on April 27.

Bottomline

While some people expect that the metaverse space will grow in the future, investors should understand it is yet to be embraced entirely, and hence, they should keep up with tech developments to make the right investment decisions.

Also read: Lion Electric (LEV) partners with US Energy Dept: An EV stock to buy?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.