Please ensure Javascript is enabled for purposes of website accessibility

Why Matterport Stock Is Worth Watching

By Demitri Kalogeropoulos and Asit Sharma – Jan 5, 2022 at 5:40PM

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

Keep this metaverse specialist on your watchlist.

In the discussion over metaverse companies, Matterport (MTTR 3.89%) often makes its way into the conversation. The company specializes in helping bring physical spaces into the digital world. 

In this video from "The Virtual Opportunities Show," recorded on Dec. 21, Fool contributor Asit Sharma explains why investors will want to watch this stock. 

10 stocks we like better than Matterport, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and Matterport, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of December 16, 2021


Asit Sharma: I'll take just a minute here and mention Matterport, symbol, M-T-T-R. This is in this idea which we're trying to bubble up and work as a team to uncover. Share this image again. You see this: unique product experience or virtual edge. One characteristic that I would love if I could have all the other things together would be that unique product experience or edge that is virtual. I think Matterport is really a paragon of that.

This is a company that helps create digital twins. It takes on a one-to-one ratio of physical space. It makes a virtual copy of that, that can be used for all purposes. Why is this unique even though there are a few competitors like Autodesk (ADSK 0.96%), Unity Software (U 5.37%), I think Microsoft (MSFT 1.92%), that all dabble in something similar? This company has focused on a consumer market, and it has rolled the technology out to be app-enabled. If you have an iOS device or an Android phone, you can download this software and make a true digital replica of your own house.

They start with a freemium model and move up from there. It's a really interesting business. I think that they are a company which has a long way to run, if they can master this consumer space. It's not really a space that the big giants want to play in right now. They're focused on lots of applications that are business-to-business. Reminds me of DigitalOcean (DOCN 1.75%) in that respect. There's something unique here. Company trades at a really steep multiple at this point in time on a price-to-sales basis. It looks very promising as a gross profit proposition, but we're going to have to see how it does in terms of scaling revenue and covering some fixed costs. I will talk more in detail, I'm sure, about it more and more on this show.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Asit Sharma owns Autodesk and Microsoft. Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool owns and recommends Autodesk, DigitalOcean Holdings, Inc., Matterport, Inc., Microsoft, and Unity Software Inc. The Motley Fool has a disclosure policy.

Premium Investing Services

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