For every step in the innovation of technology, there have been early adopters. They mostly find success while late adopters find moderate success. Non-adopters mostly die out.
Introducing one of the leading investors in the future, Japan’s Colopl Inc (TYO:3668) is an entertainment company focused on mobile games. They’re the leading developer of virtual reality games too. Colopl stock is one of the best ways to invest in VR technology.
Perhaps the most famous example of failure to adopt new technology would be the classic tale of Kodak. They were once the world’s leading film photography brand. Kodak failed to accurately gauge the significance of new technology and have now faded away.
The early bird truly gets the worm in the information age. With the advent of social media, Facebook came first and is now dominating web platforms. Likewise, Whatsapp is the leader in mobile messaging over data with the most number of worldwide active users.
We expect the same of virtual reality, gaming’s newest technology. In fact, the gaming VR market will have a US$5 billion valuation before 2020 according to a Superdata report.
Colopl Inc. is leading the VR gaming industry and just established the world’s largest virtual reality fund worth US$50 million. It will finance companies working on head-mounted displays, 360 degree content, development tools, and distribution platforms.
Colopl Stock: Invest in Virtual Reality
Represented by its mascot, Kuma the brown bear, Colopl is an abbreviation for the original name of the company which is “Colony Plus Life.” They focus on the high-performance mobile phone business and bringing customers more content-rich entertainment.
The company’s products and services revolve mostly around mobile games. Colopl’s business is made up of four parts which include domestic mobile games services, overseas mobile games services, VR service, and other services.
Colopl Inc. is keeping a close watch on the VR market despite having a main focus on smartphone games. They’ve already taken initiatives to develop VR games.
There are two main reasons why InvestAsian believes that you should invest in Colopl stock. First of all, it’s very profitable. With a total revenue of over 23 billion yen (around US$220 million) Colopl stock boasts an incredibly high net profit margin of 26.8%. High profit is due to the low cost nature of distributing digital content.
Secondly, the business has great returns and attractive valuations. Performance has led to a ROI and ROE of over 50%, along with an ROA of 36%. Colopl looks to be even more profitable in the future with its investment into VR gaming as well. All of this along with Colopl stock’s low P/E ratio of 12, and seeing little analyst coverage, makes it a great buy for your portfolio.
Want to invest in the Japanese stock market? You might also be interested in InvestAsian’s analysis of Info Mart stock – a major e-commerce player in the country. We suggest opening a local brokerage account to trade Japanese stocks easily and at a lower cost.
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