November 7th, 2022 | 13:12 CET
The revolution for the portfolio: Meta Platforms, Meta Materials, BYD
Table of contents:
Meta Platforms: Visions, but little substance
The Meta Platforms share is currently the talk of the town. Some time ago, the Company shocked with weak quarterly figures. The reason: Meta Platforms is currently investing a lot of money in the Internet of the future. Founder Mark Zuckerberg has chosen the metaverse to be the new playground of the former Facebook group. But what exactly is the metaverse? The metaverse refers to a virtual space in which parallel worlds exist thanks to data glasses, which, paired with cryptocurrencies, enable new possibilities around entertainment, business and research. One example is the virtual office shared in the metaverse by freelancers working together on a project. The motto is VR glasses on, office at hand.
Although everyone is already talking about the metaverse, the applications are still limited. It is also not entirely clear why Meta Platforms of all companies should be the decisive player in the metaverse. The former Facebook group does not exactly have the best image among users. Why future customers should now also deliver data to Mark Zuckerberg free of charge from virtual parallel worlds seems doubtful. More noticeable is that there are several companies that are creating the metaverse together. For example, Zoom announced its first conferences in the metaverse this summer. It is much more likely that the metaverse will see its breakthrough thanks to concrete solutions than Mark Zuckerberg's largely content-less visions helping the project to take off. The Meta Platforms share is at the bottom and currently rather not an investment. The Metaverse project is too abstract.
Meta Materials: New markets at the frontiers of physics
By contrast, the plans of the second company with Meta in its name are much more concrete: Meta Materials serves the meaning of meta in the sense of a revolution. Meta Materials are products that turn the laws of physics on their head. In concrete terms, metamaterials have properties that do not occur naturally in this form in nature. These can include ultra-thin coatings that guide light around objects and thus enable stealth. Ultra-thin and largely invisible antennas or displays are also possible in this way. Meta Materials lists a whopping nine markets in its latest company presentation that can be revolutionized thanks to its innovative products: Aerospace and defence, augmented reality, the automotive industry, brand protection, batteries, regenerative energies, communications, consumer electronics and healthcare. In total, Meta Materials already stands for 288 patents.
While Mark Zuckerberg's projects are still little more than visions, Meta Materials has received orders worth millions of USD in recent months, as well as announced partnerships with other companies in various areas. Among others, Meta Materials is working with Covestro, the former plastics division of Bayer. The Company is listed on the NASDAQ in the US and is, therefore, the focus of numerous investors. The stock has shown strength in recent weeks, rising 57% alone last week. However, a loss of around 70% is still on the cards on a one-year horizon. If Meta Materials succeeds in making a breakthrough in only one of its numerous fields of activity, a revaluation is likely. Although the Company is already valued at EUR 587 million, it is clear in the market that the innovative Meta Materials has the potential to be worth billions.
BYD and the realistic dreams
One company that imagines itself in other spheres, at least with its slogan "Build Your Dreams," is Chinese automaker BYD. What started as a battery manufacturer and was mocked by German carmakers as a supplier of electric scooters only about a decade ago, BYD is no longer the subject of flippant slogans. The Chinese convince with powerful models, are leaders in batteries and rechargeable batteries and even have their own chip division in the group. Nevertheless, stock market legend and billionaire Warren Buffet and his investment company Berkshire Hathaway recently sold shares in BYD again. What is causing unrest on the market should not unsettle long-term investors: Buffet is merely taking profits.
The fact that BYD has lost around 27% over the course of a year is not a disaster. Thanks to its now solid market position in China, the Company can ignite the next stage of growth. The market entry in Europe will be a test that cautious investors should wait for. It would not be surprising if the innovative company were to make strategic acquisitions soon. In addition to automotive suppliers, revolutionaries such as Meta Materials could also be among the potential targets of the enterprising Chinese. Meta Platforms, on the other hand, currently shows that there is a fine line between visions and dreams: The share will only become interesting again when the Company offers concrete products around the metaverse that score points with customers.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.