Editing by Junzhi Huang
In a report Thursday, Morgan Stanley identified the 'metasurverse' as the next big investment theme, and some equity sectors are already benefiting from it.
"Metaverse" is a virtual world where people from all over the world can meet, play games, watch movies and trade. The Meta universe concept gained attention this year after big companies such as the Meta platform, formerly Known as Facebook, and Microsoft turned their attention to the next generation of the Internet.
"It could fundamentally change the medium through which we interact with each other," said Edward Stanley, equity strategist at Morgan Stanley.
Stanley further explains that so far, companies have been building their own thriving versions of the metasverse. But the "true" meta-universe will only happen if interoperability between all companies is possible, which will take time.
It will take years and partnerships across companies to allow users to move seamlessly across millions of experiences and take their digital image and possessions with them." "He added.
Stanley listed a number of companies that could benefit from the metasverse, including technology and gaming stocks, and added that Roblox's stock is already moving in that direction. The company also detailed the potential market for the metasverse (see chart below).
Stanley continues, "The news flow on the metasverse concept has been high, and more and more companies are embracing it. In any major topic, companies and analysts are currently more interested in the meta-universe than any other."
The game's target audience is mainly young gamers, most of whom are under 17, although the average age is steadily rising, he said. The strategist also highlighted the importance of the South Korean market and how the country's more than 400 tech companies can accelerate metaseutic interoperability.
"Metasexes activity and corporate releases are growing rapidly in multiple regions, from the US to China and South Korea." "He added.