25. November 2021 | 13:42 CET
XPeng, Meta Materials, Aixtron - Welcome to the Metaverse
Sound fundamental analysis is essential to be successful in the stock market in the long term; at least, this was the basic rule before the Reddit hype about GameStop & Co. The news that Facebook wants to reinvent itself under the name "Meta" prompted investors to buy shares in the Company of the same name. The Company is quite promising and has great potential in the long term due to the development of new materials for 5G, photovoltaics and consumer electronics. From our side, "Congratulations, dear Meta shareholders."
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ISIN: XPeng Inc ADR | US98422D1054 , Meta Materials Inc. | US59134N1046 , AIXTRON SE NA O.N. | DE000A0WMPJ6
Acknowledgment from the CEO
Taking the slight mix-up in humor, Meta Materials CEO George Palikaras thanked the Company with a tweet, "On behalf of @Metamaterialtec, I'd like to welcome @Facebook to the #metaverse." The man is practiced. Already last year, the Reddit community jumped on the stock in short order. Within two days, the stock shot from USD 6 to USD 23, only to settle back in the USD 5 range. Meta Materials is not a meme stock, however, but the Company has excellent potential in terms of the technology it has developed.
The market for metamaterials is gigantic and is growing at an annual rate of almost 24%. By 2030, the market volume is expected to reach USD 10.7 billion. Development strategies for metamaterials and functional materials focus on structures that create unusual and exotic electromagnetic properties by altering light and radio waves in ways that would be impossible naturally. Meta Materials has been successfully researching materials science for a decade.
A bouquet of patents
The results are impressive and demonstrate the Company's competitive advantage over its rivals. Including the patents added with the Nanotech acquisition, META now has a total of 247 patents (154 issued patents and 93 pending applications, including three design applications) in 65 patent families, of which 44 families include at least one issued patent. The total number of patents has increased 166% from 93 in 2020, and the number of patent families has more than doubled from 28 in the previous year.
The platform company aims to continue to significantly expand the field of high-performance functional materials to protect its leadership position and capitalize on commercial opportunities with partners. The Canadians' engineered functional films can be sold in the consumer electronics, 5G communications, medical, aerospace, automotive and clean energy segments. With a stock market value of around EUR 1.20 billion, the innovation leader in metamaterials is more than promising for the long term.
As usual for such a research company, the figures for the third quarter are marked by high losses. For the first nine months of 2021, the net loss was USD 61.5 million. In contrast, revenues rose 111% to a still-low USD 1.8 million.
One step further is the Chinese electric car Company XPeng. However, the third quarter figures also showed strong growth with an extended loss. Sales were just under USD 888.00 million, up 187.4% YOY. At 119.2%, deliveries almost cracked the 200% mark. With 25,666 vehicles, the Company was also well ahead by 47.5% compared to the previous month.
The P7 electric sedan was the best-seller, with a total of 19,731 vehicles delivered to customers. The gross margin of XPeng was 14.4%. However, net income was again negative at USD 247.5 million. Calculated on the individual share, this means a loss of USD 0.29. Following the announcement of the figures, the Chinese investment bank CCI increased the price target from USD 60 to currently USD 69 and maintained the Outperform rating.
Aixtron: Nosedive after buy recommendation
Investors reacted quite harshly after a buy recommendation by analysts at Berenberg Bank. The "buy" rating was maintained, but the price target was lowered from EUR 29 to EUR 26. Analyst Charlotte Friedrichs assumes that the equipment supplier for the semiconductor industry is benefiting from high order intake but that the momentum is likely to slow for the time being. However, the analyst continues to believe in the Company's long-term potential.
The price target reduction caused the share to fall below the critical support area at around EUR 20 and triggered a sell signal. After a sell-off below EUR 18, the stock recovered at least partially and is currently trading in the EUR 19 range again. If the daily low does not hold, the next support zone at EUR 16.80 can be identified.
Meta Materials is the absolute innovation leader in new materials and has a competitive advantage over its competitors due to its more than 240 existing patents. XPeng continues to grow. At Aixtron, one should wait for price stabilization.