Thursday, March 10, 2022
Hype happens — and as investors pile into new and promising tech trends way too early, it often leads to terrible losses.
I’ve elaborated on this phenomenon before, of course, sharing how we can use Gartner’s annual Hype Cycles and Google Trends real-time data to avoid this trap, and instead, to time our emerging tech investments wisely.
But I’m bringing it up again today because the world is going gaga over the metaverse.
So much so, even non-tech companies like drug store giant CVS Health Corporation (CVS) can’t help but get in on the action.
This should be a huge warning sign.
In fact, as I see it, there’s only one investing strategy you should be using right now to get positioned for the metaverse mega-trend. Anything else is premature.
Let me explain…
Next to patent filings, trademark filings can give us an early indication about what technology trends are set to dominate the world.
That’s why CVS’s latest filings to trademark its pharmacy and health clinics in the impending virtual world are so significant.
They indicate a clear intention to provide wellness and nutrition coaching in a virtual setting.
That sounds eerily similar to telehealth, which is a bonafide investment opportunity right now. But for the moment, let’s forget about that.
What’s so instructive here is that CVS’s filing activity builds on a growing trend by other non-tech companies, including Walmart Inc. (WMT) and NIKE, Inc. (NKE).
Walmart filed multiple trademarks at the end of 2021 that reveal plans to create its own cryptocurrency and collection of NFTs, as well as to make and sell virtual goods.
Meanwhile, Nike filed seven trademark applications recently indicating an intent to make and sell virtual branded sneakers and apparel.
Here’s the problem…
All of these metaverse “services” — whether delivered virtually or in real-life — require a way for end users to access the metaverse.
If you invest in such services before that access exists, forget buying a cart before the horse… you’re buying a cart without a horse.
Or think of it this way: the internet is nothing without a way for you to get online and poke around. Without a specific device, like a PC, tablet, or smartphone, the internet is just “there.” It’s essentially useless.
The metaverse will be no different. Without a device to get you “inside” the metaverse, it’s just “there.”
You need a device to bridge the gap between YOU and the metaverse.
We already know what that device will be: augmented and/or virtual reality glasses.
But until a compelling, mass-adopted version becomes available, the metaverse mega-trend promises to be stuck in neutral.
So when it comes to making money in the metaverse, what should you do right now?
Should you play video games to earn crypto?
Buy virtual real estate?
Invest in Meta (FB) simply because it changed its name but not its business to focus on the metaverse?
I say, heck no!
The only smart metaverse investment right now involves buying the most likely suppliers and leaders in augmented and virtual reality technology.
They’re either going to dominate the growth trend themselves, or be acquired by the likes of Apple Inc. (AAPL) and Meta and Alphabet (GOOG) so these giants can dominate the trend.
With that in mind, I’ve put together a special report detailing one patent-rich company (currently trading for under $3 per share) that’s all but guaranteed to be a major player in enabling the metaverse.
Ahead of the tape,