21 Nov 2021: Metaverse Concept Chinese series

You can also find more quality youtube video of individual stocks, broad market and macro analysis on my youtube channel at Hopehope赋予希望：

Metaverse is not a new concept as can be seen by ready player one movie. This concept was then amplified when Facebook rebranded its name to Meta.

I sat in and listened to Bilibili's recent 3Q earnings conference and while it is not unexpected for me to find the increase in MAU, I kinda get the sense that companies like Bilibili and Huya are now paying more for conent in the race to get users stickier to the platform. Why is this the case? Metaverse in itself is a concept and requires alot of technical support and tools from 5G, 6G, semiconductor chips, cloud storage space, software and hardware like augmented reality and virtual reality tools. Lastly and one of the more important factors is the participation of users.

So whoever has the community size to participate in the metaverse and dabble in the multi-metaverse is going to get a decent size of the pie. Huya being majority controlled by Tencent, which itself has claimed to have the tools for the metaverse would stand to benefit in the long run despite short term regulatory overhang. WIll it be one year before the game approvals restriction will be lifted? Nobody truly knows. But recent news that said that the game approvals activity may resume by Beijing did create some excitement and companies like Tencent and Netease did enjoy a brief surge.

It is noticeable to see Netease strengthening despite the sharp pull-back of Alibaba. Alibaba has definitely disappointed in terms of earnings and it may not be wise to hold Alibaba as compared to Tencent. Tencent being in a less touchy space compared to Alibaba (at least Tencent's founder has not been under that immense scrutiny as compared to Jack Ma)...

Stayed tuned to my youtube channel at Hopehope赋予希望 if you are keen to be kept updated on quality research covering individual stocks, broad market and macro market review.

As always, this should not be construed as any investment or trading advice.