Last weekend we released “Metaverse: The Next Stop of the Internet”, and many of our friends were still a bit confused after reading it and asked in private letters, “What are the opportunities for our secondary market after writing a big report of 50 pages?” Just in time for the communications sector play “1/365” lead up, we will start talking about this topic.
Let’s start with the communications industry. From the first half of last year, after the “new infrastructure” fever, communication plate all the way downward expected, to what extent? First look at the institutional position – 0.4%, yes, a new low since 11 years.
The problem is that the reason for institutional abandonment is not performance, but the valuation downward. The current PE-Band of core targets, such as ZTE, Xinyisheng, and CIIX, is already clearly at the lower edge of history, and market expectations are at low levels. Of course, we believe that in the context of 5G construction slowdown, overseas export restrictions, chip supply tightening, the expected downward revision is understandable, but the market’s most fundamental concern is the slowdown in demand, Q1 performance is good, we worry about Q2; this year’s performance is good, we can not see next year; 5G this year there is a volume, we doubt whether there will be incremental global next year? Because of the lack of killer pop-up applications, confidence is difficult to boost.
This phenomenon has occurred in the past, the fundamental turn in the application. 2011-2012, communications after the construction of 3G also faced a similar situation, the board ranked bottom for two consecutive years, regardless of the macro-level impact, the industry-level turning point in the smart terminal popularity after the rise of applications such as handheld games, it can be said that the last round of Apple phone became the benchmark for technological innovation – -Mobile phone hardware innovation + IOS open ecology, the advantages of the communication network to great advantage.
And in this round, why do we say that the meta-universe may be the masterpiece of innovation?
We summarize the technological innovation of metaverse as BAND – Blockchain, Game, Network, Display, together to create a digital space-time with reliable economic system, virtual identity and assets, strong sociality, immersive experience, and open content creation, such a realization process There are challenges for both software and hardware – 5G networks, cloud gaming platforms, AR/VR, holograms, UGC tools and platforms, underlying blockchain and NFT, etc. We have now seen Roblox, Minecraft, etc. have moved forward in this direction, but the gap is still very far.
Even this little progress still allows the world to see the charm of the meta-universe virtual illusion + grand scenario, and this excitement will perhaps translate into new expectations for TMT. Let’s put it this way, the post-80s are more receptive to the Internet compared to their parents, and Generation Z was born to be the natives of the digital world, will their online form ascend? We will now be immersed in the UGC short video of Jitterbug, the future we may stay in the virtual world all day, shopping, work, social; now PC can surf the Internet, the future meta-universe era, no a 3090, VR glasses may not even brush out the picture, traffic consumption more can not fight, by then no one will doubt that 5G is redundant, if coupled with AIOT it? The Internet of Things can be more than just meter reading, everything is connected and the vision is to sense the world.
The metaverse is a game, and more than a game.
Roblox shows the world the appeal of an open content + social + primary economy model, with 42.1 million DAUs, up to 5.7 million simultaneous online, and over 18 million games as of Q1 2021. Among Roblox users, the number of underage users under the age of 16 is 67%, 62% of users are from Europe and the US, 15% are from Asia, and 72% log in through mobile devices, perfectly presenting the pursuit and perception of games for Generation Z.
However, if we take a look at the report, behind the continuous high share price, the revenue and profit are obviously “bifurcated”: the revenue is record high repeatedly, but the loss for N consecutive quarters, 21Q1 is also enlarged. The reason for this is that, with the increase in the scale of the platform creators, sharing costs are rising, but also in strengthening the infrastructure platform construction investment, the statement end of the deferred recognition also has an impact. As a result, the profitability of the listed company and the content creator’s share are mutually reinforcing, but as Roblox as a whole, the platform and the content creators are complementary, and the virtual currency Robux generated by external exchange unifies the value of Roblox as a whole, and this indicator (Booking) is all the way to new highs, so what would be the result if the economic model of blockchain and the clearing mechanism were superimposed? What would be the result?
The changes brought about by the metaverse are just beginning, and the two industries, gaming and blockchain, are moving in different directions towards the same Rome. One side has a mature industrialized process and talent pool, while the other side has tools and unique economic models for mapping the real world. Both still need time to collide and integrate, and look forward to the addition of traditional industry leaders Microsoft, Steam, Unity, Tencent, etc. The metaverse is expected to lead the next round of change and innovation.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-does-the-meta-universe-mean-for-the-tmt-secondary-market/
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