WIMI Stock Flies On Potential 5G Breakthroughs; But Can Hologram Make Money?
WiMi Hologram Cloud Inc. (WIMI Stock Report) skyrocketed on Friday following update on how 5G applications could boost the hologram market. This came after the hologram technology was showcased by China’s most prominent businessman Jack Ma. As of Friday’s closing bell, WIMI stock was up an eye-popping 280%. The question here is, can we expect the Chinese tech stock to continue its rally this week?
With the upgrade of 5G holographic communication network bandwidth conditions, we could potentially see exponential growth in the holographic application market. This could range from entertainment, a conference to gaming, and social networking. Of course, the hologram space is still in its nascent stage. To say it would be making money a few years from now would be speculative at best. Although the company hasn’t been listed on Nasdaq for a very long time, WIMI stock is quickly gaining a following.
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Hologram Technology To Power WIMI Stock Moving Forward
The company has a short history of 5 years. It sees hologram technology as having an abundance of applications. In fact, holograms are nothing new; the technology has been around since the 1960s. However, holograms need powerful components to keep the image from lagging. While the concept was revolutionary in the 1960s, the world lacks the infrastructure to turn the idea into reality. As we enter the 5G era, the wireless connection we have today is finally fast enough to make this technology viable.
The following is an excerpt from the company’s [press release on the hologram market: “After 5G landing, the first scene application will accelerate the DEVELOPMENT of VR/AR, and the growth rate of The Chinese market will be higher than that of the world. Therefore, with 5G blessing, the communication and transmission shortboards of VR/AR and other immersive game scenes will be made up, and it is expected that the commercial use of VR/AR of immersive games will be accelerated.”
There’s also a reason why there’s a surge in interest in WIMI stock. The company was actually able to provide a real example of technology during the World Artificial Intelligence Conference. Due to the coronavirus pandemic, the convention included human holographic projection. That included appearances from Alibaba’s (BABA Stock Report) founder Jack Ma and Tesla’s (TSLA Stock Report) CEO Elon Musk. With these appearances, there’s no reason why investors are not buying into hologram tech which could see tremendous growth over the coming few years. The market could reach $500 billion in 2025.[Read More] Should You Invest In Biotech Stocks Right Now?
What’s Next For WIMI Stock?
For investors who are betting on the hologram industry in China, it may seem like a good opportunity to have a breakout in the near-term. But the big question here is, is the rally we saw on Friday sustainable? And how would the company generate its revenue for now and in the future?
From official filings, the company generates its revenue by creating advertising campaigns for its clients. Its holographic augmented reality software enables users to insert real or animated three-dimensional objects seamlessly into video footage. These ad campaigns are then disseminated on various social media platforms in China. Now, this may be an interesting market. But what would be more exciting is to see the future applications of its hologram technology? Perhaps such technology would be able to create new solutions and use cases that were not possible before. If WiMi Hologram Cloud can deliver on these applications, it could potentially have huge growth in the long run. That said, could this be the best tech stock to buy in July?