DigiXnode: Issue 7 | Author: Jessica Wong
In the last two installments, we took you through a brief understanding of blockchain and how it can add value to your business.
You may be curious about how can “Metaverse” and “blockchain” can create money values in the stock market. In this issue, we will introduce you to “concept stocks”.
01 “Concept” in concept stocks
“Concept stock” is another stock selection method relative to “Blue chip”. “Blue-chip” needs to have good company performance to support the stock price, and “concept stocks” are to hype up the stock price by hyping different themes to become a hot spot in the stock market.
The “concept” in the stock market is not only a generalization of a certain stock category but essentially refers to a market investment consensus: a popular stock is considered to fit in a “concept”, and investors will carefully analyze its industrial background, investment opportunities, prospects, etc., and be gaining confidence to the “concept” and the stock.
02 “Concept” = Advertising Effect
When the “Internet/ .com” became a “concept”, it brings advertising effect. Even if a company doesn’t have a strong track record on its own, as long as its stock is lumped into a certain “concept,” investors will start paying attention to the stock actively.
A successful example is Shanghai Maling Aquarius Co., Ltd. Its business performance in manufacturing and selling canned food and mineral water products are mediocre. When the company opened an e-commerce website to sell mineral water in 1999, it was included in the Internet concept stock. After that, it became the hottest stock in the market and attracted countless investors.
Therefore, the stock selection method of concept stocks is different from Blue chip which chooses nationally recognized, well-established, and financially sound companies. On the contrary, it included similar types of stocks which related to the same hot issues in the stock selection criteria.
03 Metaverse concept stocks?
“Metaverse concept stocks” refers to the stock portfolio of a company whose business is related to the blockchain included in the “Metaverse Concept”. In recent years, with the popularity of concepts such as blockchain and Metaverse, different related concept stocks have emerged as the times require.
04 The hottest “Metaverse concept stock”?
The most popular Metaverse concept stock is “Meta” (formerly known as Facebook) as it hyped the concept of ‘Metaverse’ within a year.
Meta announced that it would invest 10 billion in the founding department “Facebook Reality Labs” to research VR and AR technology. Mark Zuckerberg also expressed his vision to create a Metaverse for 1 billion people in the next ten years. Thanks to the contribution of Meta, companies are eager to link their business to the “Metaverse”.
In addition to Kwang, equipment manufacturers, such as chipmakers Nvidia and AMD, will also receive attention as the “metaverse concept” requires high-tech support.
Soon, Walmart and McDonald’s registered the Metaverse trademark in early 2022. It is reported that Walmart intends to manufacture virtual goods such as electronic products and launch virtual currency and NFT.
05 Blockchain + Concept stocks = ?
As long as the business or part of the business is related to the blockchain, it can be divided into “blockchain concept stocks”.
There are thousands of “blockchain concept stocks”. Taking “Shenzhen Genvict Tech” as an example, the company has researched the theory and application of blockchain in intelligent transportation and will conduct research on ETC and transportation big data blockchain with professional institutions. Under the current background, combining national secret technology and blockchain technology to ensure the security of data transmission and storage.
A company that is successfully classified as a “blockchain concept stock” will receive more attention from investors. At the same time, the stock price will not only be affected by its performance, but also by the policies of the entire blockchain industry.
06 How to add blockchain elements to the business?
DigiXnode (dXn) is the exclusive service platform for Hong Kong and Macau of China’s national alliance chain BSN and has launched an entry website.
dXn provides subscription-based “blockchain” services, with low operating costs, which is similar to the current cloud services.
BSN has been launched in the Chinese market, and domestic use cases include: banks can use this blockchain technology to approve loans, speeding up the process and approval time.
07 Summary
For companies, adding more “blockchain” related concepts can attract more investors’ attention. Meanwhile, more use of blockchain and other technologies can also transform the company’s business, thereby improving production efficiency and establishing mutual trust in cooperation between companies.
For investors, we should pay attention to if there is substantial business support behind these hot concepts stocks. To strike a balance and select companies that have both business capability support and emerging concepts that have the potential to become hot topics
Leave a comment to share your favorite “Metaverse Concept Stocks”!