• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Tuesday, June 6, 2023
SLC Metro News
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home Technology Metaverse

Metaverse Stocks: Snap Is The ONLY Stock Included In 5 Of The 6 Metaverse ETFs – Seeking Alpha

metaverse-stocks:-snap-is-the-only-stock-included-in-5-of-the-6-metaverse-etfs-–-seeking-alpha
Share on FacebookShare on Twitter
Wall street sign in New York with New York Stock Exchange background

naphtalina/iStock via Getty Images

Snap logo

Snap logo

Wikipedia

Snap Inc. is Included in 5 of the 6 Metaverse Exchange Traded Funds [ETFs]

The below table focuses on the greatest frequency of a stock holding in the 6 metaverse exchange traded funds [ETFs] that I have identified in this Seeking Alpha article:

Table I created

Table

Table I created

While Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms (NASDAQ:FB), Roblox (NYSE:RBLX), Sea Limited (NYSE:SE), Twitter (NYSE:TWTR) and Unity Software (NYSE:U) are included in 4 of the 6 ETFs [see right column of the above table], Snap Inc. (SNAP) is included in 5 of the 6 ETFs. GOOG and FB represent the largest holdings in 2 of the 6 ETFs, Roundhill Ball Metaverse ETF (NYSEARCA:META) and O’Shares Global Internet Giants ETF (BATS:OGIG) [see above table with green boxes]. The Next Frontier Internet & Ecommerce ETF (NYSEARCA:FMQQ) contains “none” of the 7 stocks occurring in at least 4 of the metaverse ETFs [see the FMQQ column in the above table], while OGIG and Exchange Traded Concepts Trust – Fount Metaverse ETF (NYSEARCA:MTVR) have positions in all 7 of these stocks. Zynga (NASDAQ:ZNGA) will be acquired by Take-Two (NASDAQ:TTWO), as announced on January 10, 2022, but ZNGA represents a holding for only 1 of the 6 metaverse ETFs – MTVR [not shown in the above table].

Snap is No Longer Outperforming All 6 Metaverse Exchange Traded Funds Year-to-Date

The below graphic was developed using my Fidelity account. Note the “drop off a cliff” and the October 21, 2021, Reuters news release, as follows:

Graphic I created

Graphic

Graphic I created

The below year-to-date chart and analyst excerpt were sourced and created using my Fidelity account on January 14, 2022, before the market open:

Graphic I created

Graphic

Graphic I created

As the above suggests, a price target reduction from $75 to $45 is quite significant. 65% of this stock is held by institutions [source: TDAmeritrade] and 435 million of 1.6 billion shares traded on January 13, 2021, in what can only be characterized as an “institutional dump.”

Expect the metaverse ETFs to reduce positions in Snap, if they have not, already. Also, expect short interest to grow from 4.02% on December 31, 2021, [source: TDAmeritrade], in coming months andor until some positive catalyst presents itself. The Apple privacy changes announced in October 2021 will continue to adversely impact SNAP’s ability to generate ad revenues.

Opinions Vary on the Future of SNAP

Snip I created

Snip from SA

Snip I created

On a single day [January 5, 2022], Seeking Alpha published 4 articles on SNAP; a balanced approach – two were bullish and two were bearish, as follows:

Snip I created

Snip from SA

Snip I created

Two Analysts Have Lowered Price Targets

The below were captured from my TDAmeritrade account on January 13, 2021, prior to the market open:

Snip I created

Snip from TDAmeritrade

Snip I created

Again, you should expect all software and tech and growth stocks to be very volatile during 2022 [the below is from January 11, 2022]:

Snip I created

Snip from TDAmeritrade

Snip I created

The Pundits and Some Anecdotal Observations About Sector Rotation

Bloomberg and CNBC

Bloomberg & CNBC logo

Sources: Bloomberg & CNBC

Nearly a year ago the pundits agreed that a move from “growth” to “cyclicals,” “value,” and “dividend paying” stocks was and remains warranted for a significant portion of your portfolio. They were a bit early, but that move, along with increased volatility, appears to be “in progress.”

Energy and financials are doing well, and the consensus is that they will continue to do well during the 2022 calendar year. This, as inflation and mortgage rates are already increasing, and it is broadly accepted that the Federal Reserve may have to do 4 instead of 3 rate hikes for 2022. Therefore, my focus is only on very selectively nibbling in on the “metaverse” stocks. I would, of course, not recommend Snap until sector conditions reverse, and in their favor.

Summary

Apple (NASDAQ:AAPL) has power over Snap. Both are metaverse stocks. I would not expect any of the ETFs to increase their position in Snap. In fact, I would expect these metaverse ETFs to decrease their positions in Snap. This, in addition to the fact that nothing has changed since the October 2021 news release with respect to the Apple privacy policy change and analyst downgrades suggests, to me, that large, long-term positions in Snap should be avoided.

POSTSCRIPT: My Other Seeking Alpha Articles Covering Metaverse Stocks

My other Seeking Alpha articles covering metaverse stocks include these: Block, Inc. (NYSE:SQ), PayPal Holdings, Inc. (NASDAQ:PYPL), and U.S. Energy Initiatives Corporation Inc. (OTCPK:USEI) & Metal Arts Company, Inc./Medium, Inc. (OTCPK:MTRT). My starting point for identifying metaverse stocks is the META exchange traded fund. USEI and MTRT and Metaverse Capital (OTCPK:GBCHF) were NOT included in that fund. I will attempt to identify additional metaverse stocks until I have exhausted the universe of equity securities in this growing “sector” of the worldwide economy. If I recommend one of these stocks, it is as long-term investments, and not as day-trades, unless otherwise stated (e.g., USEI & GBCHF).

NOTE: I emailed all 6 of the metaverse funds to recommend that they establish modest positions in MTRT. Of course, they may ignore this emailed recommendation.

This article was written by

Anthony Cataldo profile picture

Full name for licenses is Anthony Joseph (“A.J.”) Cataldo II.  Retired university accounting professor, CPA, CMA, CGMA and author of 10 books and 200+ articles and columns in 50+ different journals and outlets, with experience as CFO, Government Auditor, Public Accountant and Litigation Support Expert Witness in cases involving GM, Ford, and other big cap firms.  Years ago, the Securities and Exchange Commission used 3 of my research articles in a fraud case.  I have taught at 10 universities including Northeastern & UCBerkeley (online and during Covid).Paige Whiteside is my niece, a Master’s of Finance student at the University of Arizona, with an undergraduate degree from Arizona State University, and I have encouraged her to submit some articles to Seeking Alpha for publication consideration.  We will not be covering the same stocks or securities, we will not be commenting on each other’s content, and, as required by Seeking Alpha, and appropriately so, I am disclosing this association/relation in my profile bio.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

SLC Metro News

© 2021 SLC Metro News

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer

Follow Us

No Result
View All Result
  • Home
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 SLC Metro News

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT