Happy Sunday ☀️
if you are new, welcome and feel free to join a growing list of subscribers here.
Today is about metaverses, a topic that has been very a lot in the headlines recently. Executives across industries are interested in how metaverses could take their product to the next level or provide a more immersive way to engage with their customers.
As of today, use cases and adoption are still in an early stage. Yet some smart people say that metaverses even have the potential to replace the internet as we know it.
What we cover today:
Definition & Vision 👉 What is / are the metaverse(s)
Applications 👉 Real use cases
Landscape 👉 The top 3 players and some smaller ventures
Investing 👉 Alternatives how you can invest
Let’s go!
If you’re reading this but haven’t subscribed, join our growing community 👇
MAIN STORY
| NEWS RUNDOWN | STOCKS | OUTSIDE
Definition & Vision
According to Wikipedia:
“The metaverse is a collective virtual shared space including the sum of all virtual worlds and the Internet. It may contain derivatives or copies of the real world, but it is distinct from augmented reality”
Mark Zuckerberg can help explain that in simple English:
“What is the metaverse? It’s a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied internet that you’re inside of rather than just looking at”.
Zuckerberg’s definition of metaverse is more broad than some others, but you can imagine metaverses as virtual rooms online.
A loose definition of metaverses would also include simple chatrooms. Its a virtual space where you meet and interact with other people who are also in this room at the same time.
A narrow definition implies a futuristic metaverse which is like a virtual replication of the real world. Users wear virtual reality equipment and are walking and “living” inside the virtual world, doing many things that we currently do in the real world, like going to school, going to work, dating, etc.
What people commonly mean today when they talk about a metaverse is a game-like online world where you can create an avatar and meet other people (their avatars). These online rooms are typically built with economic systems through which you can buy and trade items such as virtual clothes for your avatar or virtual pieces of art. You pay with real money of course.
Today’s metaverses are still a long way from fitting in the narrow definition of the word or from replacing the internet as we know it. To get from where we are today, to a world in which it is common for school or business meetings to be held in a virtual reality metaverse, several things need to happen. According to Matthew Ball, there are 8 core enablers for the metaverse future:
Hardware: Physical devices to access the Metaverse. This includes consumer-facing hardware such as phones, VR headsets and haptic gloves, as well as enterprise hardware used to operate or create virtual environments, e.g. scanning sensors.
Networking: The provisioning of connections, high bandwidth, and decentralized data transmission by backbone providers, the networks, exchange centers, and services that route amongst them, as well as those managing ‘last mile’ data to consumers.
Compute: Enablement and supply of computing power to support the Metaverse, supporting such diverse and demanding functions as physics calculation, rendering, data reconciliation and synchronization, artificial intelligence, projection, motion capture and translation.
Virtual Platforms: Development and operation of often 3D environments for a wide variety of experiences e.g. race a car, paint a painting, attend a class, listen to music.
Interchange Tools and Standards: The tools, protocols, formats, services, and engines which serve as standards for interoperability.
Payments: Digital payment processes, which includes digital currencies, financial services and blockchain technologies.
Content, Services, and Assets: Design, sale, storage, protection and management of digital goods.
User Behaviors: Changes in consumer and business behaviors including spend and investment, time and attention, decision-making and capability associated with the metaverse. These behaviors often seem like ‘trends’ initially, but later show enduring global social significance.
Each of these enablers is important for the development of the metaverse future. But while there is a good understanding of how each of the enablers needs to develop, we don’t know what the metaverse will precisely look like.
For decades it was clear that the internet would enable fully digital transactions, a stream of user-generated content and online networking games. However, no one could have accurately predicted Tinder, TikTok or Twitch. The behavior of users, monetization models and broader impact on society is unknowable.
Applications
The future vision of the metaverse is a virtual copy of the real world. Therefore many areas of real life can find application in future metaverses. The possibilities are practically endless.
Let’s start by looking at which areas will be first: Advancements in the development of metaverses will be driven by those areas where the most user adoption and therefore money is.
Gaming has long been at the forefront of building out what a metaverse could look like. The massive-multiplayer-online-game Fortnite is one of the most successful examples: it has hosted multiple live concerts, screened movies and other programs. But it still falls short of the metaverse ideal due to tech limitations with regards to concurrency. At Travis Scott’s Fortnite performance, for example, the 12.3M concert attendees weren’t actually in the same universe, watching the same show in real time. Instead, viewers were split up into 250,000 virtual “copies,” each capped at 50 participants, of the concert.
After gaming, e-commerce is the strongest driver for the development of metaverses. Due to blockchain technology, virtual items can now be unique (“non-fungible”), making them more desirable to users. As a result, virtual goods have entered the worlds of fashion, real estate, art and even pets to become a $190B market.
“I think where we’re going as a world [is] where Nike and Adidas will release products in the real world, and then they’ll throw these into a game. And I think the inverse of that is true in the future. There will be people designing their own brands in these game worlds, and then they’ll be made in reality.” - Aglet CEO, Ryan Mullins
Another area for application is education. Have you read the book / seen the movie Ready Player One? In this vision of the future, children attend school using their avatars in the metaverse. In a similar form this is happening today via Zoom and online homework. Add some VR glasses and a 3D class room in which students’ avatars can walk around, and you have the first metaverse school. Schools could launch their own mini-metaverses that consist of just a classroom in which teachers, students and learning material are all online.
The concept of the metaverse has the potential to revolutionize almost every industry from consumer products to payment, entertainment, hourly labor and even sex work. Altogether new industries can be created with new products, services, skills and professions to enable this future. The collective value of these is immeasurable.
Who are the companies with the potential to build a dominant platform in this space?
Main Players
Before going into the main players, I want to split the (future) market landscape into horizontal and vertical solutions, and set up a key hypothesis around the market dynamics:
Vertical metaverses will be virtual environments dedicated to simulating real life for a specific application. Virtual class rooms or Facebook’s Horizon Workrooms (explained further below) are good examples. Virtual technologies will be metaverse-related solutions for specific applications. This includes for exampel virtual speed dating rooms or a software that creates realistic avatars based on pictures (both already exist).
Horizontal metaverses in contrast will be a handful of large metaverses in the more narrow definition. Horizontal platforms will connect and integrate with smaller, vertical metaverses in order to provide one wholistic virtual world which users don’t need to leave. In a horizontal metaverse, kids attend class in a metaverse school, walk out of the door and visit a Nike store to buy virtual sneakers, put them on their avatar and then launch a game in which their avatar is still wearing the new shoes.
The school, the Nike store and the game may be separate virtual metaverses, that are integrated into and connected by the overarching horizontal platform.
Developing a horizontal metaverse will require massive amounts of cash, engineering talent, and access to a large user base — making big tech firms the most likely contenders. Giants like Microsoft, Amazon or Facebook (which today has around 2.6B monthly active users worldwide) are best equipped for such a task, given their persistence in owning a significant portion of the online work economy, social graph and e-commerce infrastructure.
My hypothesis on the market dynamic:
In the beginning, the big tech players start with vertical metaverses as proof of concept, to test and to learn. We are already seeing this. Over time, the separate vertical applications will be merged onto unified platforms to offer a more wholistic user experience.
At this time, there will be a maturing landscape of start-ups that build specific vertical solutions. These technologies will cover the entire metaverse-stack, from network technology (e.g. interoperability enablers), to Fintech (e.g. block-chain-based payment systems) to applications (e.g. dating in a Tinder metaverse).
Vertical solutions from smaller companies will be added to the larger horizontal platforms either through M&A or via sales / license agreements. Example: If Match Group (Tinder) builds a VR-dating experience, it would benefit greatly from an integration into Facebook’s horizontal metaverse, giving it exposure to a geater user base. Facebook may not want to develop its own dating metaverse, but instead integrate Match Group’s solution on its own platform and benefit because users will stay in the Facebook world when dating in VR.
In my opinion it is most likely that a hand full of dominant horizontal metaverses will emerge and persist. They will serve as platforms and provide the infrastructure on which businesses and individuals can build smaller ventures, thereby extending the larger metaverse.
Coming back to the present, let’s look at the strongest players today and a few emerging ventures:
#1: Facebook
In Facebook’s Q2-21 earnings call, Zuckerberg explained where he sees the company’s future. His ambition: Turn Facebook into “a metaverse company”.
“I wanted to discuss this now so that you can see the future that we’re working towards and how our major initiatives across the company are going to map to that”. - Mark Zuckerberg
Facebook has been public about its interest in metaverses and has acquired several VR-focused game studios over the last few years. Also, in June the company acquired a Roblox-like platform called Crayta.
This month, Facebook announced a new metaverse-centric product group and later hosted a media event exclusively held in virtual reality to demonstrate its Horizon Workrooms - an early version of what the future office may look like.
Reporters put on their VR headsets and used digital avatars to enter the office-metaverse. Horizon Workrooms is a free app for companies and their employees to work together in a shared virtual office space. Users can sit and chat with their colleagues, and collaborate using virtual whiteboards.
“The idea is you go in, wherever you are, you can have your perfect set-up, people can stop in and collaborate quickly. But it’s really great for focused work.” - Zuckerberg
On Horizon Workrooms - from an Oculus blog post:
Workrooms is our flagship collaboration experience that lets people come together to work in the same virtual room, regardless of physical distance. It works across both virtual reality and the web and is designed to improve your team’s ability to collaborate, communicate, and connect remotely, through the power of VR — whether that’s getting together to brainstorm or whiteboard an idea, work on a document, hear updates from your team, hang out and socialize, or simply have better conversations that flow more naturally.
Workrooms brings some of our best new technologies together for the first time into one experience on Quest 2. Using features like mixed-reality desk and keyboard tracking, hand tracking, remote desktop streaming, video conferencing integration, spatial audio, and the new Oculus Avatars, we’ve created a different kind of productivity experience.
So far, gaming has been the Nr. 1 area of application for VR technology. Facebook’s Horizon Workrooms marks a leap into the work space through immersive virtual business meetings, communication and collaboration tools.
During the development of the Horizon Workrooms, the company put special attention towards creating a feeling of presence:
Voices came from the right place, thanks to Workrooms’ spatial audio, and hand gestures and viewing directions really made it feel like the three of us were in the same room. - Ben Thompson, Stratechery
You can stand up and write on a virtual whiteboard to explain concepts to others and even bring your computer into virtual reality. Your real-life screen is shown in front of you in virtual-reality and you can even import your keyboard to take notes or make a presentation.
“We think of Workrooms not so much as just a virtual reality experience but actually as a mixed reality experience. It’s blending some elements of the real world with some elements of the virtual world.” - Mike LeBeau, director of Facebook Reality Labs’ Work Experiences
Whether Horizon Workrooms will stick with users depends on two main factors:
Whether VR hardware becomes cheaper and more widely adopted by companies and workers; and
on whether Facebook, which had a lot of trouble with privacy complaints in the past, can provide adequate reassurances to users that their virtual office life remains private
Facebook’s business case is to sell its Oculus VR hardware as cheaply as possible to make the technology available to as many people as possible, and focus on making money through commerce and advertising within the metaverse itself.
Facebook was late to mobile. But this time, Zuck wants to be first. The metaverse gives Facebook the opportunity to connect its dreamy moonshot efforts with its core business and build on its strong position in virtual reality tech.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow. Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.” - Zuckerberg
#2: Roblox
(Good intro video on Roblox, but behind WSJ paywall: Link)
For a while, Roblox seemed to be the embodiment of the metaverse today - a social online world in which users can join a range of virtual experiences from other people or create their own world which others can join.
There are over 40M games on Roblox and around 200M monthly active users. The company did not create any of the games on its platform. Instead all of them were created by users for users.
Roblox’s vision has resonated with investors. The company went public on March 10th 2021 and is now worth more than $50B - small compared to Zuck’s empire but larger than almost any other game company outside Asia.
Compared to other players, Roblox has, by far, the most robust and multi-faceted metaverse economy.
“If you’re a developer, for example, you can generate income not just by selling your experiences to consumers, but re-selling your creations (a house, a car) to other developers via the Roblox marketplace.” - Matthew Ball
What distinguishes the platform from others is the interplay between its huge offering of virtual games and its personalised avatar system. Independent of which virtual world a player enters, his/her avatar will stay the way the user designed it. Effectively a personalized, virtual version of You.
“People can also be whoever they want to be on the platform, and this authenticity is an important part of their self-expression, be it in real life or in the Metaverse.” - Manuel Bronstein, Roblox’s chief product officer
While a broad selection of looks and accessories is free, an in-game store is available with all sorts of user-generated styles, clothing, etc. This creates new types of jobs for digital-first designers to sell their products to users on Roblox. The company revealed that creators on its platform earned ~$330m in 2020 alone, minting several millionaires in the process.
One user-generated item is the Sir Rich McMoneyston III Disguise below for around $140.
Also large brands are making use of the possibilities and user base of Roblox’s metaverse. Various brand names are selling licensed digital product replicas on Roblox, including Nike Air Max trainers. Gucci recently hosted a Garden Event, in which a virtual bag was sold for around $4,115. Its physical counterpart costs $3,400.
Roblox’s mini-metaverses are not based on virtual reality like Facebook’s Horizon Workroom. Also, their main customer group are children younger than 13 years, compared to Horizon’s focus on adult working professionals.
Nevertheless, users spend a significant amount of time on the Roblox platform, meet and play with their friends, meet new people, build virtual worlds for entertainment or to earn money, and spend money on buying premium items. These factors qualify Roblox as one of the largest metaverses that currently exist and make the company so valuable.
Even before Covid, the company was growing from $325m in revenue in 2018 to $508m in revenue in 2019, or 56% YoY, which is impressive. Since then, traction has exploded, benefitting from children staying at home.
How well players can be retained on the platform beyond 2021 will depend on how integrated the platform can become in the lives of its users.
If it persists merely as a space to play free online games and chat with your friends at times in which the possibilities to meet outside are limited, then the amount of time spent by users on the platform will decline in the near future and with it the revenue generated on the platform.
On the other hand, if the company manages to capture the time and attention of its users in other areas than just gaming (and concerts), Roblox may thrive as a more horizontal metaverse.
#3: Epic Games
In April 2021, Epic Games raised $1B of new money from investors at a $28B valuation. What will the company spend it on:
“We are grateful to our new and existing investors who support our vision for Epic and the Metaverse. Their investment will help accelerate our work around building connected social experiences in Fortnite, Rocket League and Fall Guys." - CEO, Tim Sweeney
Even if you don’t know the last two games mentioned, you have probably heard of Fortnite.
Fortnite has over 350M registered users and 80M active monthly players, making it one of the most popular games in the world
In 2020, Fortnite generated $5.1B in revenue for Epic Games, a 37% YoY increase
Over 60% of players are between 18-24 years old
While Epic makes most of its money with games, it has also become one of the most important venues for virtual music concerts: In 2020, Epic announced a three-week-long concert series that took take place on the game’s virtual island. It was broadcast from a brand-new Los Angeles studio built specifically for in-game concerts.
Since then, Fortnite has hosted concerts from artists such as Ariana Grande and rapper Travis Scott, attracting tens of millions of viewers. In virtual concerts you don’t have the same atmosphere like you do at a live concert. The artists, however, have unlimited options of how to design their performance. A clip from Ariana Grande’s concert below illustrates this point. The show is literally quite spacy, but these types of gamified concerts clearly attract a large viewership.
When you consider that already 5 years ago there were concerts performed by holograms on a real-life stage and they sold-out, then concerts in the metaverse aren’t far off.
Fortnite has also been more experimental with its metaversal advertising. Instead of being presented with pop-up ads for Star Wars for example, your avatar appeared in the game as Darth Vader and was dropped onto an island where J.J. Abrams asked you which concert you wanted to join.
In July 2021, Epic acquired Sketchfab, the largest 3D content site in the world which own over 4M virtual 3D assets and has a strong digital infrastructure for buying and selling 3D content.
Epic is clearly stepping up its ambitions to build a larger metaverse, starting from a gaming and entertainment angle. The company has scale, a user base that consists of many who qualify as early adopters, and already provided first proof-of-concepts.
Notably, Sony contributed $200M of the recent $1B financing round into Epic Games and there are rumors that Epic is talking with Google regarding a potential acquisition.
Other players
Decentraland is a decentralised 3D virtual reality platform powered by the Ethereum blockchain and opened to the public for the first time in February 2020.
In Decentraland, users can participate in the platform’s Decentralized Autonomous Organization (DAO). As a DAO, Decentraland gives its users the power to participate in the project’s governance.
Improbable is a software development unicorn that develops SpatialOS, a cloud platform which enables games to support up to 20,000 participants.
Wolf3D is an avatar platform that allows you to create a personal 3D avatar based on a picture of yourself, which be used across games and platforms (interoperability).
Theoverlay.io - Redesign company websites into metaverses
Morpheus XR - Team events and collaboration in VR
Couch Live - A virtual living room to chill and watch TV with a friend
You can get a sense of the number and variety of metaverse and VR related ventures that already exit by having a look at Wolf3D’s list of partners.
With commitments of large potential acquirers like Facebook, Roblox and Epic to invest heavily into metaverses, it is not surprising that we currently see an explosion in the number of start-ups in the space.
Investing
If you are interested in participating financially in the future development of metaverses, there are a few options.
#1: Big Tech / Horizontal Platforms
The most obvious alternative is to buy shares in one of the large tech companies like Facebook or Roblox, which have the potential to build the most popular metaverse of tomorrow.
Cons:
The caveat is that companies in this bucket make most of their money with other products / services. So the value of these firms does not so much depend on their metaverse success, as it does on other parts of their business. However, this also provides you some risk protection: If a company like Roblox is not successful in expanding its metaverse beyond online games and virtual concerts, it will still be a very popular gaming platform. Its valuation and your investment are unlikely to fall to zero
Pros:
You can invest and exit at any time (high liquidity)
You will receive regular updates on the current development status in the quarterly reports of the company
#2: Metaverse-Currency
Metaverses often have their own digital currency or tokens. Some of them can represent investment opportunities by letting you participate in the popularity of the specific metaverse they exist in. Here is one example:
Decentraland’s MANA and LAND
The virtual land in the world of Decentraland is called “LAND.” The world is split up into parcels, which can be purchased by users. These pieces of digital real estate are non-fungible digital assets (unique) and they are finite. So you can own a unique piece of the Decentraland metaverse. Once you own LAND, you can control how it looks to everyone else and create content to display on it.
Content developers buy LAND to create and display their content and connect with their followers. Income they generate from their digital land goes directly into their pocket. This is similar to when real-estate investors buy desirable pieces of land in the real-world to build on it. Only here, it is digital land. Assuming Decentraland increases in popularity, more people will buy LAND, and the price is going to increase. One person reportedly spend over $200k to buy a certain amount of LAND.
MANA is the virtual currency of Decentraland and is also limited in supply. MANA tokens are used to pay for LAND, avatars, wearables, names, and many more items on the Decentraland marketplace. As more people join the platform, the demand for MANA will increase and push up its price.
You can test Decentraland for free. If you believe that it will attract an increasing number of users, you could buy MANA or LAND today as an investment.
Cons:
You need to be familiar with crypto currencies and own a crypto wallet
Pros:
You can buy and sell MANA at any time (good liquidity) and LAND on a secondary market in the metaverse
It’s a direct bet on the success of a specific platform
If you buy LAND you can even utilize it to earn income for example by building a poker table which other users can play on
#3: Ventures / Vertical Technologies
Another option is to invest in start-ups and private companies which are building use-case specific technologies or smaller metaverses for specific applications. However, this alternative is only available to institutional or accredited investors.
You are likely to find some of the most promising start-ups when using the list of enablers discussed in the beginning of the article. For example Nr. 5, Interoperability:
Start-ups which develop a technology or vertical metaverse will thrive most if their product integrates well into larger platforms. To stick with the VR-dating example: If Tinder is integrated with Facebook’s Horizon Workrooms, then users can leave the work space and enter the dating experience seamlessly. If they are not integrated, users would have to log out of the horizontal metaverse and then access Tinder in a separate space. Their avatar may be different, the feeling of presence may be worse, etc. Sufficient reasons for people to stay on the Facebook platform and use a different VR-dating application.
The point is that vertical solutions with a good interoperability will be more attractive acquisition targets and can demand higher exit valuations.
Cons:
Only accessible for institutional and accredited investors
Highest risk
No possibility to sell before an exit or secondary (low liquidity)
Pros:
Highest return potential
It’s a direct bet on the success of a specific platform
In summary:
Investing in large tech players is the best alternative for most investors and offers a good risk/return profile. If you are familiar with crypto currencies and prefer more risk, digital tokens of individual platforms may be a better fit for you. If you have access to invest in private companies, look for solutions that function as one of the core enablers of metaverses.
Personally, I am long Facebook.
If you find this newsletter useful or if it has provided valuable insights to you, please forward it to someone who may find it interesting as well 🙏
MAIN STORY |
NEWS RUNDOWN
| STOCKS | OUTSIDE
Shopify and TikTok have expanded their partnership on in-app shopping. Shopify merchants will be able to link and sell products directly in TikTok videos. Link
Cash balances held by companies around the world are at an all-time high of $6.8 trillion. That’s 45% higher than the 5-year pre-pandemic average. We are likely to see more share repurchases, M&As and higher wages, similar to what we currently observe at big banks. Link
Samsung is making an incredible $200bn investment into biopharmaceuticals, artificial intelligence, semiconductors and robotics. Link
Coinbase has stockpiled $4B in cash as it prepares for tighter regulation and potential crypto risks like cyber attacks or trading declines. Link
T-Mobile said that in a data-breach hackers had stolen information from over 40M current or former customers. Link
The Great Resignation. US private sector workers are quitting their jobs at record rates in 2021. The quits rate first reached a new high of 2.7% in April 2021 and then a new record in June 2021, representing about 4M jobs each month. Link
MAIN STORY | NEWS RUNDOWN |
STOCKS
| OUTSIDE
Bill.com (BILL) - Target price: $100. Analysis
I have to admit, I was wrong with regards to Bill.com and this week I closed my short position at a loss. What happened: The company reported its performance for the quarter ending June 2021 (Q4-FY21)
Revenue of $78.3M (85.88% YoY) beat by $13.29M
EPS of -$0.07 missed by -$0.04
Net dollar-based retention was 124% during fiscal 2021 compared to 121% during fiscal 2020 and 110% during fiscal 2019
Even more impressively, the company increased its revenue guidance for the next twelve months from $300M to $480M, by close to 60%! This implies a NTM growth rate of 100%
Net income guidance was lowered from -$12M to -$85M, a significant drop which shows us that BILL is driving growth at all costs
And the market’s preference is clear: Growth over profitability, as the share price jumped 30% on Friday
The impressive jump in growth rate does justify a higher price target. Also, no matter how high the valuation, I think it is unwise to be short in a company which is performing this well operationally and growing 100%. Therefore, I decided to cut the loss and move on.
Could I have foreseen this growth increase? Or could I have done better due diligence? Maybe. It's hard to say. Based on the crazy price jump, it seems a lot of people were surprised by the performance and guidance change.
Either way, it's a lesson learned: If a company and a management team have a stellar performance, don't short the stock, even if the valuation is astronomically high.
Moving on!
Docebo (DCBO) - Target price: $85. Analysis
I also exited my position in Docebo this week. The company has performed very well and the stock has returned 91% since I wrote the analysis exactly 6 months ago. The PPS is now close to the target of $85 so I exited the position as planned.
Pexip (PEXIP) - Target price: $15. Analysis
There has been an important announcement from the company on Monday this week:
“The rapid growth of Pexip will fundamentally change the Company over the coming years. The Board and Odd Sverre (CEO) are aligned with regards to Pexip’s strategy but have different views on the approach going forward. Thus, the Board and Odd Sverre have agreed that the timing is right for a new CEO.
The Pexip Board will now initiate a succession process. Meanwhile, CFO Øystein Hem has agreed to take on the role of interim CEO with immediate effect. Mr. Hem joined Pexip in 2018. He has extensive management and industry experience from Telenor and McKinsey.”
No further details were shared around specific topics on which the two sides could not agree. The share price dropped by up to 8% on the day following the announcement.
On Tuesday, Pexip made another announcement, sharing that board member (insider) Kjell Skappel bought additional shares for ~$170,000.
My take:
The company’s Q2 performance was good and Q3 should continue to be so. Q4 and beyond will depend on the strategic changes that the company is now likely to make. Personally, I will not sell now but wait for additional information in next quarter’s update and then re-evaluate the company’s position.
The fact that a board member bought $170k worth of shares after the announcement & price dip can be a good sign, but does not need to be: We already know that some board members expect the company to benefit from a new CEO. Whether that will actually be true remains to be seen.
Taking a step back, we should keep in mind:
Pexip is a company with $93m in ARR that is valued at a total enterprise value (TEV) of around $700m. A TEV/ARR valuation multiple of 7.5x for a company which is growing 41% YoY and has $116m of cash on the balance sheet is unheard-of (low) in today’s environment.
ECOMI (OMI) - Target price: MOON. Analysis
MAIN STORY | NEWS RUNDOWN | STOCKS |
OUTSIDE
🛑 United asks flight attendants not to tape passengers to seats
🤖 Psychopaths don't move their heads while talking
🗑️ PowerPoint is worse than useless
If this was this forwarded and you want to get your own copy every other Sunday 👇
How did you like this week’s edition? Your feedback helps us make this great.
Bad | Meh | Good | Great | Awesome, will forward
Thanks for reading! Until next time,
Christopher
Sources: Facebook, Oculus, Matthew Ball, Stratechery, WSJ, Financial Times, Exponential View, Ready Player Me, Business of Apps, IGN, Binance