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Profit From the Dark Side of the Metaverse

Profit From the Dark Side of the Metaverse

Facebook is now a metaverse company. It will be changing its name to “Meta” in December.

If you’re struggling to understand the metaverse, you’re not alone…

It’s a big concept. One that continues to evolve every day.

In the past, humans interacted with the world in person.

Work and meetings took place in an office.

Friends hung out at in-person gatherings.

And if you wanted to go on an adventure, you packed up the car and drove.

But today, things are a bit different.

We use online messaging and video conferences.

Friends hang out in different spaces by playing video games together.

And to go hiking in the mountains, you can strap on some virtual reality goggles.

Although it seems bizarre, the metaverse has been evolving right in front of our eyes for years.

We began creating digital identities with the internet and email in the late 20th century.

But with smartphones, digital identities have reached a whole new level.

Some hate this. Others live for it.

Regardless of your view…

Our shift toward a fully digital world is inevitable.

And, I don’t know about you…

But this SCARES ME.

Is Your Personal Data Safe?

It’s not that I don’t like the idea of living in a metaverse.

Heck, I practically already am.

I just hate how the metaverse captures our personal data.

If this data ends up in the wrong hands, who knows what could happen.

And companies already struggle to keep our data secure.

Take Facebook, for example. Earlier this year, a hacker stole personal data for 553 million users.

How ironic. Facebook wants to be the gatekeeper of the metaverse, but it can’t even safeguard its own users.

The company may have gotten away with this one. But the stakes are higher in the metaverse.

We create data every second that we move a muscle. The metaverse records all of our tendencies.

The abundance of data is a gold mine for bad actors that want to steal our identities.

This mass creation of data and new vulnerabilities is the dark side of the metaverse.

But for investors, this dark side brings a huge opportunity.

Cybersecurity Stocks Are on Fire

Growth of the metaverse has created a huge demand for cybersecurity.

cybersecurity market graph

(Source: Statista.)

In fact, the cybersecurity market should surge 59% over the next five years.

This would put annual cybersecurity revenues at $345 billion by 2026.

The market seems to be catching on to the opportunity.

Cybersecurity stocks are on fire.

They’re up 62% over the past year.

That’s well above the 42% return of the Nasdaq Composite Index.’

Nasdaq Composite Index cybersecurity

(Source: Bloomberg.)

Even at current prices, the market is still underestimating cybersecurity stocks’ growth.

We should see outsized gains in the space over the coming years.

Regards,

Steve Fernandez

Research Analyst, Strategic Fortunes

 

Morning Movers


From open till noon Eastern time.

 

Avis Budget Group Inc. (Nasdaq: CAR), the rental car company, is up an amazing 90% this morning. The stock jumped after it reported earnings and revenue for Q3 that easily beat analyst expectations thanks to the recent boom in the rental car market. The stock’s 20% short interest was also noticed by meme traders today, further propelling the stock.

 

Rogers Corp. (NYSE: ROG) is an engineering materials manufacturer that is up 30% after DuPont, the chemical maker, decided to diversify its business by buying Rogers for $5.2 billion.

 

Arista Networks Inc. (NYSE: ANET) is a cloud network solutions company that is up 19% on earnings news. It beat both earnings and revenue estimates, raised guidance for 2022 and even announced a stock buyback plan.

 

Under Armour Inc. (NYSE: UAA), the sports apparel company, is up 15% this morning after reporting earnings that beat estimates thanks to rising demand for athletic apparel during the pandemic. The strong results also led the company to raise its full-year outlook for 2021.

 

Tanger Factory Outlet Centers Inc. (NYSE: SKT) operates open-air upscale outlet shopping centers and is up 14% today. Although the company reported Q3 results with an earnings miss, investors were impressed by the strong revenues and operations of the company.

 

MicroStrategy Inc. (Nasdaq: MSTR) provides enterprise analytics software and services. It is up 13% today after CEO Michael Saylor said that the company would keep buying and adding bitcoin to its balance sheet.

 

NetScout Systems Inc. (Nasdaq: NTCT) provides cybersecurity solutions to protect digital business services against disruptions. It is up 12% on the news that it will be joining the S&P SmallCap 600 Index on Friday.

 

Fabrinet (NYSE: FN) provides precision optical packaging, electro-mechanical and electronic manufacturing services. It is up 11% after topping both revenue and earnings estimates for Q1.

 

Marathon Digital Holdings Inc. (Nasdaq: MARA) is a cryptocurrency miner that is up 11% today. It has no news of its own to report, rather it is up thanks to the general uptrend in the crypto markets.

 

R1 RCM Inc. (Nasdaq: RCM) provides revenue cycle management for health care providers. It is up 10% after reporting earnings for Q3. While it missed earnings estimates, it managed to continue its trend from the past year of beating revenue estimates.

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