METAVERSE According to a research report published by Brandessence Market Research, the metaverse market size reached USD 44.69 billion in 2020. and Predicted to reach USD 596.47 Billion by 2027. The metaverse market size is likely to grow at robust 44.8% CAGR during the 2021-2027 period. According to Mordor Intelligence, the augmented reality market, a key technology powering the Metaverse, was valued at USD 1.98 billion in 2020, and it is expected to register a CAGR of 151.93% over the forecast period (2021 - 2026).
Augmented reality is likely to present a completely new way to engage and expand the abilities of retailers. The possibilities of Augmented reality are endless, especially when combined with the ever-evolving wireless technology, which enables the integration of mobile devices and home appliances to provide an enhanced connected experience for the end-users. Several augmented reality stocks today include Apple (APPL), Nvidia (NVDA), Meta Platforms (FB), and Nextech AR (NEXCF), among others.
Augmented Reality technology finds its wide applications across various industrial verticals, such as automotive, defense, healthcare, industrial, e-commerce and entertainment. The growing automation across these industries will fuel the growth of the global augmented reality market. Increasing demand for convenient remote assistance methods will surge the growth of the market. Furthermore, Augmented Reality (AR) -based applications are highly efficient for tracking, identifying, and resolving technical. The beneficial services of augmented reality will significantly contribute to the growth of the market.
A small cap stock that has shown promise in its recently published preliminary unaudited Q4 results is Nextech AR. Based on the March 8th press release, the company’s total annual revenue grew 47% to $25.9 million. According to Nextech’s CEO, the company is seizing on a substantial business opportunity with its 3D model making and AR capabilities and believe that the demand for everything 3D will not only continue but accelerate into 2022 and beyond. Nextech’s mission is to build the first vertically integrated artificial intelligence (AI) powered 3D model factory for the Metaverse. He believes that 2022 will go down in history as the breakout year for everything 3D and a great year of growth for Nextech and our shareholders. Nextech’s long-term strategic initiatives are focused on advancing and garnering greater industry leadership in the augmented reality space.
A major potential catalyst for Nextech is its uplisting to the Nasdaq. In July 2020, the company filed its application to uplist to the Nasdaq. Prior to this filing, Nextech AR traded close to $2/share USD and peaked near $6/share USD.
The company currently has its application in to uplist to the Nasdaq and has made important adjustments late last year including switching to a larger audit firm and strengthening its board to better align itself with its uplisting goal. In fall 2021, a press release noted that Nextech AR finalized its change of auditor to Marcum LLP to better align with U.S. Exchange uplisting goal. In November 2021, the company strengthened its board of directors. Nextech AR brought on Jeff Dawley, CPA, to its board of directors, as well, head of the audit committee. In my opinion, the main task Nextech needs to execute is a reverse split to meet the minimum share price per Nasdaq listing requirement. Listing on the Nasdaq will help improve Nextech AR’s ability to raise capital and will increase its liquidity.
Do your own due dilligence before investing. My opinions are my own. I am long Nextech AR.