Reality Is Setting in for This Metaverse Stock
It seems as though valuations are resetting across the board. Large technology corporations as well as small-cap companies have been no stranger to the ongoing sell-off in the capital markets. In some ways, it's hard to believe that the days of meme stocks and the subsequent market euphoria were only a year ago. One of the primary contributors to this overzealous investing sentiment was the metaverse. The metaverse is a term used to describe a futuristic alternate reality in which participants can buy and sell goods or interact with one another via virtual avatars. One of the most highly speculated metaverse stocks was spatial-indexing company Matterport (NASDAQ: MTTR). After reaching all-time highs in November 2021, the stock has cratered more than 80% over the last six months. Let's dig into Matterport's business and assess if now is an ideal time to buy the dip.
It can be demoralizing to watch a stock crater in what appears to be a never-ending downward spiral. However, as investors, we must take a step back and really analyze why this selling activity is happening.
Sometimes overselling can be attributed to emotional, or even irrational, investment decisions. On the other hand, stocks are often punished when the company and its management repeatedly fail to meet or exceed their stated goals.
Source Fool.com
