(C) Reuters. Is Glimpse Group a Good Virtual Reality Stock to Buy?
The shares of digital reality company Glimpse (VRAR) have gained in price significantly over the past few months. Furthermore, the company has been forging several partnerships and executing strategic acquisitions to strengthen its virtual reality portfolio. However, we think the stock looks overvalued at its current price level. So, will VRAR be a good addition to one’s portfolio now? Read on.Glimpse Group, Inc. (VRAR) in New York City is a virtual reality (VR) and augmented reality (AR) company that provides enterprise-focused software, services, and solutions in the United States. VRAR’s shares soared in price on their first trading day in July. The stock climbed above $18 on day one, from its $7.00 public offering price per share. However, the hype did not last, and the shares soon thereafter retreated back to the offer price. However, the stock has gained significantly over the past three months and is currently trading above its 50-day and 200-day moving averages.
The AR and VR markets are booming due to their adoption in several verticals. VRAR has been investing substantially to enhance its portfolio offerings, acquisitions, and strategic partnerships. In September, VRAR announced the acquisition of the assets of XR Terra, a provider of VR and AR software development and design training courses. The acquisition was structured as an asset acquisition, and VRAR assumed no liabilities. Moreover, this marks VRAR’s eleventh acquisition of a subsidiary company. The company also began development in the Non-Fungible Token (“NFT”) space. VRAR is focusing on utilizing the robust technologies of its subsidiary companies in the emerging NFT and Crypto segments. The company has also completed several partnerships over the past few months.
However, VRAR’s operating expenses increased 67% year-over-year in the company’s last reported quarter, leading to negative operating income of $1.40 million. Also, its net loss came in at $1.66 million, indicating a 29.7% increase year-over-year. The increase in expenses can be attributed to increased employee headcount to support growth, and expenses specific to VRAR status as a publicly-traded company.
Is Glimpse Group a Good Virtual Reality Stock to Buy?
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