'Metaverse' stocks enjoy bullish run

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By Anna J. Park

One of hot themes that has been drawing investors' attention lately is 'Metaverse' ― referring to a collective shared space of virtually enhanced reality using cutting-edge augmented reality (AR) technologies ― and local companies leading the sphere of this new trending industry are witnessing their stock prices rise.

GIANTSTEP, one of the top-notch leading companies in this new industry of creating computer-generated spaces and experiences, saw its stock price increase by 240 percent from its offering price, since its debut on the tech-heavy KOSDAQ market last Wednesday. The stock hit the daily increase cap of 30 percent on the first day of its trading, followed by two consecutive trading sessions of more than 14 percent jumps daily.

The stock fell slightly by 0.13 percent in Monday's session, closing at 37,350 won ($33). However, the stock's moves have been quite impressive amid the local stock markets' recent bearish atmosphere, reflecting both local and foreign investors' heightened interest in this new field.

“GIANTSTEP owns key visual effects (VFX) technologies that are essential in the Metaverse industry,” Yoon Hyuk-jin, analyst at SK Securities, wrote positively about the company in his latest report, published on Monday.

Founded in 2008, the creative tech company not only collaborated with the country's global conglomerates in various projects, but also has been increasingly working with K-pop management companies as the firm has been working on virtual online concerts amid the pandemic. It's also been closely partnering with portal giants like Naver in various virtual projects.

Together with Naver Now ― the web portal giant's livestreaming service ― the company provided extended reality (XR) technologies in a real-time live broadcast show featuring K-pop singer IU last Thursday. IU introduced her latest songs from her new album in the virtual space.

The analyst also called for investors' interest in other local companies in this new trending industry, including Alchera, Dexter Studios, WYSIWYG Studios and Sunic System, as they are estimated to hold relevant technologies in bringing about virtual reality experiences for customers.

Dexter Studios, another VFX company that has participated in various local films and TV shows, also saw its stock price rise more than 28.8 percent since the start of this year. The company's stock finished at 7,870 won on Monday's closing, a 2.08 percent jump from the previous session.

Another VFX and cinematic tech company WYSIWYG Studios is also enjoying its stock's bullish run. The stock price hiked by 6.14 percent on Monday's session, closing at 12,100 won. This is almost double the price compared to Jan. 4, when the stock was traded at 6,170 won.