What is this Craze about the ‘Everything App’?

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Australian Economy, Macro Economics

It seems that the craze on cryptocurrency and blockchain was not enough to ring the market, a tech app more commonly known to be the ‘Everything app’, is now buzzing in the ears and becoming popular among investors. With only a handful of information available, what is emerging out is that the app seems to be claiming to have a ‘one for all’ platform and is expected to bring the next technological shift in one’s day to day activities. The app idea is on the lines of Amazon and Google and it is primed to connect 1 billion people who can shop, surf, pay bills, bank, or plan travel, all at one platform which sounds pleasing as it offers a one stop shop solution for the online consumers and make the day to day life much easier. Though the details are hard to find, this smart phone ‘Everything App’, is claimed to generate about $36 trillion in the mega-industry, which is said to be over 10 times of the combined GDP of Australia and India.

It is supposed to be on android play store, and is said to be developed and supported by an ASX listed company that was trading at about 5 cents (as at April 30, 2018), and the moment more traction comes into play, it might trade at higher levels. Many experts trying to figure out the company being talked about have identified a small company that has rallied 138% in last one month, as at May 14, 2018. The company being discussed is 99 Wuxian Ltd (ASX: NNW). NNW was up 3.3% on May 15, 2018 and traded at about $ 0.155. The company is said to be having investors from China, which is working towards its e-commerce expansion plans. It is still unclear about what has made some investors think on the lines of an initial public offering related to the app while the company was listed on ASX way back. Further, the app is being linked to 5G implementation, which is said to be planned by China soon and thus, the company behind the app and speculated as such seems to be the above Chinese company that is looking to leverage from the current scenario in telecom field. One thing that investors need to know is that NNW is yet to build on its financial strength. In FY17, 99 Wuxian reported revenue of RMB 122.4 million (AUD 23.6 million), gross profit of RMB 77.8 million (AUD 15.0 million), and net loss of RMB 17.0 million (AUD 3.3 million), while the sales were down owing to the PRC tax legislation which replaces business tax with value-added tax. Further, in the last three years, this company witnessed a significant fall in share price (66.7%) owing to lack of transparency and questionable relationships with brokers and investment banks. Though the wind seems to be changing its direction now in favour of the stock.

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Registered Users (Source: Company Reports)

At present, it’s been quoted that over 73.6 million users are registered on this app and it’s is embedded into another 300 million of users for personal banking or insurance apps. It is being talked that new users are registering themselves on this app at the same pace, as they are on social media giant, Facebook. If the app lives up to the expectations, there will be no need to stand in the long queues of petrol pump, one will just have to tap on this App, at one’s disposal.

Some months back, few third-party websites revealed that this app processed 211 million financial transactions that are 56 million more than 2016 and is growing 50 per cent faster than online payment mega-rival PayPal. This user-friendly app is not just about to making a booking for a movie or for travel, it’s about doing all those things and more at one single place and one can buy almost everything with a single app. Recently, the Everything App’s team are said to have invested $6.5 million on an insurance booking license which allows one to buy a car, home or any kind of insurance via their app. At the same time, one may be wary of the fact that there is nothing guaranteed or set with an investment in the company as it may hit a hurdle any time or any regulatory challenge, which means one may end up losing money.

It is too early to say that the app has the ingredients to become a global phenomenon in the near future and that the so called potential ASX Tech Marvel can pay out 20 times of one’s money. On the other hand, as the notional demand for this tech stock is climbing fast, so it is anticipated that once this app gets fully rolled out, this tiny stock could reap the rewards year after year. For instance, the recent news has taken the stock to a 15-cents price at the back of a newsletter that heavily promoted the five-cent stock, means that the stock price can be impacted by a flood of new and enthusiastic investors.

That doesn’t mean it’s impossible for this story to work out, just that it doesn’t look particularly very realistic at this time unless we see more catalysts, and there are many speculations creeping in. Nonetheless, it will be an interesting watch while investors with good appetite for risk might want to evaluate the opportunity further.


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