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Speaker 1: Past your mind back a few years and everybody was

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Speaker 1: talking about the metaverse right the market thought it would

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Speaker 1: be the next big thing, the next big computer platform.

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Speaker 1: After we transitioned to mobile computing fifteen years ago or so,

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Speaker 1: what happened to the metaverse? Sam Dicky from Fisher Funds

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Speaker 1: has been looking into this.

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Speaker 2: Hey, Sam, good at evening here.

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Speaker 1: Sam, remind me why anybody thought this was going to

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Speaker 1: be the next big thing.

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Speaker 2: Yes, well that the most evangelical believers back in twenty

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Speaker 2: twenty one thought it could be the new Internet. So

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Speaker 2: instead of interacting via text and video, we would interact

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Speaker 2: in virtual reality and cruise around as kind of lanky avatars.

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Speaker 2: And if your children irritating you play Fortnite or roeblocks,

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Speaker 2: well they are really just dumbed down versions of the metaverse.

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Speaker 2: And you might remember another virtual world we talked about

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Speaker 2: back then, head the Sandbox, which specializes in virtual real estate,

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Speaker 2: and a virtual neighbor of Snoop Dog brought a plot

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Speaker 2: of land back then from a million bucks, and that

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Speaker 2: early height was a bit like the tea markets, Smoke

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Speaker 2: and mirrors and the price of this online where the

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Speaker 2: state it's kind of collapsed by ninety nine percent.

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Speaker 1: Oh my gosh. And so what he can't do anything?

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Speaker 1: Is that that's real money he's lost.

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Speaker 2: Yes, absolutely, it's real money on a on a virtual

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Speaker 2: plot of land.

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Speaker 1: Okay, who okay, this was expected to be massive, right,

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Speaker 1: so who put money into this stuff?

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Speaker 2: It was expected to be massive, and it's a massive

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Speaker 2: unders thrown around. So I think mortgagerstanding to report at

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Speaker 2: the time saying it could be an eight trillion dollar market.

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Speaker 2: It was the next generation kind of social media stream

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Speaker 2: in a gaming platform and virtual reality, and Facebook, remember

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Speaker 2: changed its name, so I went so far as to

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Speaker 2: change his name to Meta show how serious it was

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Speaker 2: about chasing the next Internet. It wasn't just Meta. Apple

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Speaker 2: invested heavily in virtual reality hardware like it's goggles, and

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Speaker 2: the gaming company's like ten Cent in China, and Microsoft

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Speaker 2: invested heavily as well.

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Speaker 1: What's the reality, you know, compared to what they were expecting.

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Speaker 1: What are we dealing with today?

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Speaker 2: Not much? Not much. I mean I talked about those

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Speaker 2: virtual real estate prices, but messarily as a poster child here.

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Speaker 2: So there's eighty ten dollars on a metaverse to date

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Speaker 2: and they've got less than ten billion dollars of revenue

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Speaker 2: to show for that. But they are even kind of

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Speaker 2: stepping away from that the goggles of the online world,

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Speaker 2: and they're really just focusing their attention now outside of AI,

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Speaker 2: of course, which we're not speaking about tonight, on its

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Speaker 2: joint venture with ray Band, where instead of kind of

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Speaker 2: picking up your phone one hundred and thirty seven times

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Speaker 2: per day, you can cruise around with a cool pier

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Speaker 2: of ray Band glasses on with the heads up virtual

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Speaker 2: reality display.

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Speaker 1: Oh yeah, that sounds cool. What happens from here, though, Sam?

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Speaker 1: Is it? Is it possible that this idea just was

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Speaker 1: before it's time and it might catch on in the

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Speaker 1: future sometime.

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Speaker 2: Yeah, they all known. We overestimate technology in the short

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Speaker 2: term and underestimate in the long term. Could be, could be,

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Speaker 2: I think, but even the most evangelical Zuckerberg is kind

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Speaker 2: of stepping away from it for now. I do think

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Speaker 2: he's online virtual worlds that the market is selling now

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Speaker 2: are unlikely to be anything more than Niche use that

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Speaker 2: haserhaps for gaming, and perhaps remember we talked about the

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Speaker 2: time head, Perhaps if you had a friend and Partmerston

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Speaker 2: both you could team up virtually and attended constant at

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Speaker 2: High Park sounds pretty cool, but I can't. I guess

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Speaker 2: we'll sit around at work with goggles on and working virtually.

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Speaker 1: No when you want the real life experience, don't you.

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Speaker 1: I mean, is the lesson in this for investors to

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Speaker 1: perhaps be a little bit wary of tech nerds getting

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Speaker 1: extremely excited about things.

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Speaker 2: I think it is. The metaverse is not in portant

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Speaker 2: per se, but it is a great lean through which

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Speaker 2: to view that the kind of aggressive spending we're seeing

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Speaker 2: right now. So remember the scale we talked about a

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Speaker 2: month ago, Microsoft needs Amazon, Google, just for companies. It's

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Speaker 2: been one hundred and forty billion on capital expensive last

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Speaker 2: year and US spend two thirty billion next year, so

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Speaker 2: extraordinary rise. So meta all alone. So despite the incredible

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Speaker 2: success of these companies, they're backed under losers. So think

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Speaker 2: of the Windows phoned by Microsoft, of firephone by Amazon,

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Speaker 2: or the Google Glass which was a wearable computer. So

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Speaker 2: the point of all of this is the biggest resk

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Speaker 2: for these big tech companies outside of the government trying

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Speaker 2: to split them up alligivate them, is being out innovated,

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Speaker 2: so being beaten at their own game. And they do

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Speaker 2: this or they get ahead of this by throwing couns

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Speaker 2: of money. Anything with an innovation pulse and that kind

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Speaker 2: of healthy paranoia is just kind of a poster doing

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Speaker 2: business for these big companies.

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Speaker 1: Yeah, fascinating. Hey, Sam, that was absolutely fascinating. I really

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Speaker 1: appreciate it. You're talking us through Sam Dickie Aficier Funds.

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Speaker 1: For more from Hither Duplessy Allen Drive.

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Speaker 2: Listen live to news talks.

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