An analyst at investment firm Guggenheim called Nike the “best idea” for 2022 because of its focus on the metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users. and virtual products in NFT.
Guggenheim Partners the global financial and investment services company, is keeping a close refers to the closing price; similar to the same term used in stock trading. eye on the sports brand’s digital development. Nike and has described the company as his “mejor idea” para 2022.
The firm’s analyst Robert Drbul said in a note to clients that he expects the sportswear brand’s dominant market share to continue to grow as it continues to scale its products and services and expands its digital focus.
Nike “ is rapidly embarking on the next era of your company’s history. “which he hopes will be “ digitally led “, Drbul highlighted in the note published on December 31. The analyst added:
The brand has a dominant market an area or arena, online or offline, in which commercial dealings are conducted. share, which we expect to grow materially from here as digital digital technologies are these electronic tools that have the ability to generate, store or even process data. expands further, new product innovation remains robust and strong investment behind key growth drivers continues.
Guggenheim interested in Nike’s digital focus
Drbul called Nike “ the leader in the sports apparel industry “and maintained a Buy rating and $195 price target on the stock. The statements suggest that Guggenheim anticipates that investment in the company’s shares could generate strong returns this year as the brand’s success builds globally.
The brand “ presents an opportunity for long-term investors as Nike continues to offer and innovate products that connect with local consumers by promoting a healthy lifestyle and other important social issues. “, sostuvo.
Drbul shared an optimistic vision for Nike even though the company has been affected by disruptions in its global supply chain. However, the potential growth outlook for the brand doesn’t seem to depend so much on its physical items, but on a new wave of digital products that they are developing and expect to launch widely this 2022.
Drbul’s optimistic vision for Nike appears to be largely related to the retailer’s latest strategy to expand its line of business into the virtual space, which includes tokens non-fungible (NFT) and metaverse.
The commitment has generated interest to Guggenheim. In his note, the analyst said the investment firm is watching closely the evolution of the digital strategy of Nike And their participation in the metaverse. ” What would any outlook for 2022 be without mentioning the Metaverse? “ he commented.
The actions of Nike, which grew by about 18% during 2021, shot up modestly after the comments from Guggenheim. At the time of publishing, the price per share has dropped 1.22% in the last 5 days and is around USD $165.
Potential growth for metaverse in 2022
As reported by DiarioBitcoin During the last quarter, the sports apparel retailer was quick to dive into the metaverse and digital collectibles trend.
En noviembre, Nike partnered with the video game company Roblox to launch its own metaverse called Nikeland , a virtual space where fans of the brand can interact socially, trade NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. items and even participate in sporting events. Shortly thereafter, the company announced the acquisition of RTFKT Studios a startup specializing in NFT and other virtual products.
The extensive digital strategy of Nike includes video games, tokenized shoes and other products in NFT that can be used by avatars and can be traded in the virtual world ofNike.
The concept of metaverse became widely popularized during 2021 following Facebook’s name change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. to Meta and the social networking giant’s plans to expand into virtual worlds. Since then, a handful of companies from different sectors have begun to explore the sector, anticipating long-term potential, among them the main rival of Nike , Adidas which is also developing its virtual world. However, some, such as the billionaire Elon Musk doesn’t seem convinced of this development.
It should be noted that Guggenheim which belongs to the well-known billionaire family of the same surname, has been taking an increasing interest in the digital asset space. Several of the firm’s funds have been looking for exposure to Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. while some of its executives have shared bullish predictions of up to USD $400,000 for the main long-term cryptocurrency.
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Article by Hannah Estefania Perez / DiarioBitcoin
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