Whitney Tilson says the technology he's about to share with us today is so powerful, it could cut our grocery bills, reduce the amount we pay for gas, and even slash medical bills.
He calls this technology “Connexa Terra” and it's a situation unlike anything we've seen in human history. Let's find out how much truth there is to this.
The Teaser
The presentation instantly captures our attention by saying that Facebook is already spending $10 billion on this technology this year alone and that nearly all of the top 50 tech companies in the world are in a relentless race to control “Connexa Terra”.
Empire Financial Research was founded in 2019 by former hedge-fund manager Whitney Tilson. It describes itself as “a collection of contrarians on the hunt for investment opportunities that Wall Street has overlooked” and they aren't afraid to make bold predictions. We have reviewed several Empire Financial Research presentations here in the past, including Whitney Tilson's “Netstake” Stock Pick and Enrique Abeyta's “Robinhood of Crypto” Stock.
The reason for the race to control “Connexa Terra” is because this technology is set to completely disrupt the entire $85 trillion global economy and Whitney believes he's found 5 stocks that are “on the verge of controlling everything”. In fact, he's even going to reveal the name and ticker symbol of one of these stocks right here in this presentation.
Before we get to this though, our presenter expounds on the rarity of this opportunity and how it could be bigger than anything we've seen over the past three decades, including Apple in the early 2000's or Netflix in the 2010's. Some bold claims for sure, but according to the data, there is at least some element of truth in them.
For example, it took the internet 38 years to become worth roughly $32 billion, yet according to Tilson, “Connexa Terra” is already worth nearly $48 billion. Its also projected to hit $800 billion within just the next two years.
This growth rate blows the internet's out of the water, 893 times over. This is the part where we caution that past performance is no indicator of future results, but this type of unprecedented growth is bound to take a lot of people up with it and create a tremendous amount of new wealth, just like the internet did and still continues to do.
The Pitch
Whitney next tells us that “opportunities like this move fast” and if we want to profit from this situation, then we must act quickly. The way to do this (according to him) is to subscribe to the comprehensive investment research advisory service called the Empire Stock Investor. The cost for a subscription is just $49 for the first year – 75% off the regular $199.
The subscription package includes the Five Ways to Earn 10x on the World's Biggest Tech Shift research report, two more bonus reports, the next 12 month's of the Empire Stock Investor, and Whitney Tilson's daily market emails.
What in the World is “Connexa Terra”?
“Connexa Terra” is Tilson's code name for…The Metaverse. Recall at the beginning of this presentation, Whitney said he'd give us the name and ticker symbol of a fantastic “Connexa Terra” company that we should buy right away?
That company is Meta Platforms Inc. (formerly known as Facebook), which is leading the charge on this new technology. It's all-in on the technology and spending upwards of $10 billion per year to make sure it happens. Whitney says what makes this such a great investment is that we can buy Meta today, which is an incredible cash cow of a business, before this new technology becomes fully realized and essentially pay nothing for it. In other words, we would own everything Meta owns – Instagram, WhatsApp, Facebook and also get in on The Metaverse or “Connexa Terra” before other investors begin piling into it.
To break this down a bit, The Metaverse can best be described as a network of 3D virtual worlds focused on social connection. The key component behind it is virtual reality technology, which has been under development for at least 60 years, with the first VR devices being used for flight simulation, automobile industry design, and military training purposes as early as the 1970's.
Investors have been relatively indifferent to VR technologies until government imposed restrictions in 2020 kicked off a renewed consumer interest in the technology and its various applications. With VR making major strides in both hardware with lag-free, low-persistence displays and software over the past few years thanks to major investments by at least 230 companies, including Amazon, Apple, Google, Microsoft, Sony and Samsung, the global VR market is expected to grow to $62 billion dollars by 2027.
The good news, is that there are several ways to potentially make a lot more money, more quickly with VR and Whitney is going to tell us about them.
Revealing the “Connexa Terra” Stocks
The Metaverse is going to make all kinds of things possible and there are not one or two or even three, but four separate investments that we can get in on to take advantage of this mega-trend in the making.
- The first investment is one of the most influential companies in music history, with a catalog of subsidiaries in 42 different countries and 15 different recording labels. It earns almost $6 billion per year and recently created an entire band that will be tied directly to “Connexa Terra” in the online event space.
- The backbone of VR technology is Artificial Intelligence (AI) and the best way to take advantage of this boom in artificial intelligence is to buy a company that's in position to provide the countless chips and graphics interfaces that will be needed in the coming years. This company's CEO believes “about half its “Connexa Terra” revenue will come from chips and half from software” and it recently released a set of software tools that will allow companies to collaborate in building The Metaverse.
- The entire cryptocurrency market is now worth more than $3 trillion and Whitney believes cryptocurrencies will be the primary form of currency as it pertains to The Metaverse. Right now, there are several new cryptos coming out that are tied specifically to The Metaverse and they are ALL based on the coin that he suggests we should buy immediately.
- Last but not least, there's a company in the gaming industry. Since gaming is going to be a huge part of The Metaverse, there's one company that is in position to dominate this space and it's not the makers of Minecraft, Roblox, or Fortnite. Instead, its a company that's been around since the 80's and it has produced some of the most popular video game titles in the world. In fact, they have already publish a wildly popular online game that has more than a dozen iterations, with the beta version of their newest version having already been played by 7.7 million people.
Whew, that was a lot to take in. In brief, here are the investments we think Whitney Tilson is hinting at above in order:
- The first investment is Universal Music Group (Amsterdam: UMG), which formed a Metaverse band based on a popular set of NFTs (Non-Fungible Tokens).
- The chips and graphics interface supplier to VR technology providers points us to NVIDIA Corp. (Nasdaq: NVDA), which in its own words “believes half its revenue from The Metaverse will come from chips and half from software”.
- The coin underlying several new cryptos tied to The Metaverse has to be Ethereum (ETH), as there are several Metaverse specific cryptocurrencies built on the Ethereum blockchain according to the ECR-20 standard.
- Finally, the company that is best positioned to reap the most profits from the massive $178 billion gaming industry is Electronic Arts (Nasdaq: EA). There are definitely better game publishers out there, but the giveaway here is that the company did reportedly have 7.7 million users playing the open beta version of its Battlefield 2042 title, according to CEO Andrew Wilson.
How do these investments stack up against others you could be making right now?
10x Return with the “Connexa Terra” Stocks?
What stands out about Tilson's picks is that each and every one of them is a well established large cap, including Ethereum.
Typically, stocks that are already worth billions take a few years or more to get even bigger, so the “make a lot more money, more quickly” angle doesn't really apply here, unless you want to make a case for Ethereum, which itself is already at a market cap of $389 billion as of this writing. In our humble opinion, there are better, more undervalued assets out there that may return just as much over the mid/long-term.
Quick Recap & Conclusion
- Whitney Tilson teases a mysterious technology by the name of “Connexa Terra” and says it's unlike anything we've seen before in human history.
- We come to find out that “Connexa Terra” is Tilson's code name for The Metaverse and he has 5 investments that could return 10x as this mega trend impacts every area of our lives.
- Besides Meta Platforms Inc. (formerly known as Facebook), which he gives away as a “free pick” in his presentation. We will have to subscribe to the investment research advisory service Empire Stock Investor, in order to find out the rest. The cost for a subscription is only $49 for the first year and includes the Five Ways to Earn 10x on the World's Biggest Tech Shift research report, that has all the details we are after.
- Fortunately, Whitney's descriptions of his remaining four picks were very specific and we were able to uncover them all for free as Universal Music Group (Amsterdam: UMG), NVIDIA Corp. (Nasdaq: NVDA), Ethereum (ETH), and Electronic Arts (Nasdaq: EA), respectively.
- The picks mentioned are all massive companies and crypto coins in their own right, which means it could be years (if not longer) before they grow 10x over, if they ever do.
Is The Metaverse and virtual reality tech the future or a fad? Let us know your thoughts in the comment section below.