Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Matterport Are Up 11% Today

By Jason Hawthorne – Sep 9, 2021 at 4:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If this company is building the matrix, the virtual world is getting some nice boats.

What happened

Shares of Matterport (MTTR -0.91%), a maker of software that allows anyone to create a digital replica of a three-dimensional space, were up more than 11% today after the company was selected to create immersive experiences for luxury vessels.

A group of young people enjoying themselves on the bow of a yacht.

Image source: Getty Images.

So what

The relationship isn't new. Superyacht Creative, a boutique agency focusing on the luxury yacht market, has been using Matterport's software to generate 3D experiences for both builders and owners of the vessels. According to the firm, it has accelerated the pace of sales. Beyond sales, clients have also been able to use the software for insurance documentation. 

Now what

The use case adds yet another application to Matterport's portfolio. Management already points to millions of buildings in more than 170 countries that have been digitized. 

Matterport has better-known customers, like Redfin, AT&T, and Verizon Communications, and partners like Facebook. But the yacht market highlights just how many different applications of its software could exist. Aside from its scanning service for high-quality digitization, its iPhone app has dramatically increased its reach.

In the quarter ending June 30, subscription revenue and subscribers rose 53% and 158% year over year, respectively. The company will need many more announcements like today's to live up to the valuation. Its $4.3 billion market cap is nearly 35 times management's estimated $123 million in revenue. That's on par with some of the fastest growing stocks in the market. And those have a much longer public history than Matterport. It just came public through a special purpose acquisition company a little more than a month ago. 

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook, Matterport, Inc., and Redfin. The Motley Fool recommends Verizon Communications and recommends the following options: short August 2021 $65 puts on Redfin. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Matterport, Inc. Stock Quote
Matterport, Inc.
$3.27 (-0.91%) $0.03
Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
$111.41 (-0.74%) $0.83
Verizon Communications Stock Quote
Verizon Communications
$39.02 (0.26%) $0.10
AT&T Stock Quote
$19.12 (0.16%) $0.03
Redfin Stock Quote
$5.23 (1.16%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.