Meta stock falls 24% on earnings miss, analyst downgrades

Facebook parent Meta’s stock plummets after dismal earnings report The company, which also owns Instagram and WhatsApp, has lost a half-trillion dollars in market value so far this year. Owned by Roblox Corp, Roblox rakes in $3 million per day on the Apple Apple Store alone. For context, that’s 27.2% of the revenue generated by the entire mobile gaming industry — all flowing through a single game worth $45 billion. The only company I can think of that could monetize gaming in the metaverse faster would be Zynga, which Take-Two just bought for $12.7 billion. But he certainly doesn’t seem to be taking the rise of the metaverse lightly.

Currently, most of the leading companies in this space are listed in the US. While the Metaverse has been touted to be the next big thing in tech for a while, it made an entry into the mainstream with Facebook rebranding itself as Meta Platforms. Interestingly, the term was first conceived by science fiction writer Neal Stephenson in his novel ‘Snow Crash’, published in 1992. The Metaverse provides a once-in-a-generation investment opportunity. According to Bloomberg, the global revenue opportunity from the Metaverse could approach $800 billion by 2024. In October, Meta revealed that its Reality Labs metaverse division lost over $3.6 billion in the third quarter of 2022, compared to $2.63 billion at the same time the year before.

With 3.6 billion active users across platforms, an AI supercomputer on the way, a proprietary VR headset and a name to die for, Meta is well-positioned to stimulate — and capitalize on — the economic growth of the metaverse. When it comes to AR headsets, the company was a pioneer with Google Glass. That early release was far from a commercial success, but Google has continued to build its IP for augmented and virtual reality headsets since then.

ommas Review 2023: Is This the King of Cryptobots?

One of the most popular Metaverses currently is one called Axie Infinity. Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of (“Regulation A”). These investments are speculative, involve substantial risks , and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in an Open to the Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public, and Public may earn fees when you purchase or sell Alternative Assets.

During the three months ended 31 March, the company reported total revenues of $27.9bn, resulting in a 7% year-on-year jump. Of that total, $695m came from the Reality Labs unit, the company’s metaverse-focused business segment. The stock’s losses have mirrored those of the tech-heavy Nasdaq 100 index, with confidence in tech markets having plummeted and Meta’s drastic pivot toward the metaversehaving concerned shareholders. Meta’s lifeblood is the advertising revenue booked by Facebook, Instagram and WhatsApp, with businesses eager to reach their billions daily users.

Tesla Stock in 5 Years: Will Elon Musk’s company keep leading the EV market?

The General Data Protection Regulation is a European Union law that deals with data and online privacy. In 2022, the EU handed out €832 million in fines related to violations of the law. By October, fewer than 200,000 people had used Horizon Worlds, far below target, and many saw the service as being doomed to fail. Facebook owner Meta had a turbulent 2022, seeing its stock value decline from more than $325 to less than $90 in November. The company also laid off more than 11,000 employees in November as it looked to cut costs. “The tougher prioritization and discipline and efficiency that we’re driving across the organization will help us navigate the current environment,” he told investors on the call.

Last year, Match announced its biggest ever acquisition, spending $1.73 billion for Korean startup Hyperconnect. That bought Match Group an avatar-based dating experience complete with “Single Town” a virtual space for meeting. Many big tech names are set to benefit from the mega infrastructure requirements of the metaverse.

In it, the company will show attendees how to use its programs to help build out the metaverse — while in the metaverse. Sadly for anyone too bullish, shares have since crashed back to IPO price (~$66). But the company’s growth remains exponential, signaling a company primed to build the metaverse and make HODLers happy.

Our Services

Buy now to get in early on that metaverse-fueled growth, and do so at a discounted price compared to what most of these stocks traded for last fall or even at the start of the year. The above content provided https://xcritical.com/ and paid for by Public and is for general informational purposes only. It is not intended to constitute investment advice or any other kind of professional advice and should not be relied upon as such.

However, it’s possible that the metaverse won’t pan out like everyone hopes. If it isn’t ultimately lucrative, these companies would have been better off returning this capital to shareholders. It wasn’t all that long ago that investors were excited about the potential for the metaverse. Some analysts were tossing around projections that the market for the virtual world could eventually be in the trillions of dollars.

Apple

As a result, the U share price peaked in November 2021 at triple its IPO levels. Case in point, demand from gamers and crypto miners alone helped to skyrocket pandemic-era share value by 514%. And now that shares have cooled off, this may be the time to buy before institutional demand ramps up for this metaverse stock.

That will be reflected eventually in the DIS share price – making it one of the best metaverse stocks to watch going forward. Perhaps the metaverse is more akin to a “massive communal cyberspace, linking augmented reality and virtual reality together, enabling avatars to hop seamlessly from one activity to the next,” as The Washington Post puts it. While virtual reality is certainly a crucial facet of the metaverse, it’s an oversimplification to equate the metaverse with virtual reality alone. Meta CEO Mark Zuckerberg reiterated his commitment to spending billions of dollars developing the metaverse.

Top Metaverse stocks

Investors may also be intrigued by the company’s investment in technologies like the metaverse. Though it has been, thus far, largely panned, there’s no telling what the future holds, especially when it comes to technology. It’s also a clear sign that Autodesk is already prepared to start erecting the metaverse on commission, as well as sell software and training to help others do the same — hence many investors’ bullish sentiment on the stock. An established software company across multiple industries, including architecture and engineering, product design and entertainment, Autodesk is coming for the metaverse. Through its educational platform, Autodesk University, the company is planning its first live webinar, titled “Implementing Metaverse with Autodesk,” to be held on its virtual 3D campus in the metaverse.

• On Thursday, Meta’s market value sank to $268 billion, down from more than $1 trillion in September of 2021.
• And a metaverse concept stock is a stock related to the metaverse concept.
• It is not intended to constitute investment advice or any other kind of professional advice and should not be relied upon as such.
• Our strategies, packaged into Investment Kits, identify trends and predict market changes, ultimately helping investors manage risk and maximize returns.
• Microsoft’s proposed $68.7 billion bid to acquire Activision Blizzard is pending regulatory approval.
• When it comes to AR headsets, the company was a pioneer with Google Glass.

As the metaverse approaches — and the need for metaverse-ready cryptocurrencies rises — investors will continue to speculate on exactly which cryptos will reign superior. Sure, the home of Zuck may have suffered a 40% stock plunge in February after a dismal earnings release. With $16 billion in the company how to invest in metaverse coffers — and more to come once it monetizes its corner of the metaverse — Meta is undoubtedly one to watch. Bloomberg Technology The only daily news program focused exclusively on technology, innovation and the future of business hosted by Ed Ludlow from San Francisco and Caroline Hyde in New York.

Motley Fool Investing Philosophy

Bloomberg Intelligence believes the market opportunity for the Metaverse can reach $800 billion by 2024 . In November, Meta began rolling out its planned integration of NFTs to its over two billion monthly Instagram users, calling them digital collectibles instead of the oft-maligned term NFTs. Meanwhile, other players focused on the metaverse have aligned themselves in opposition to Meta’s possible dominance of the space.

The Fund invests in equity securities of SPACs, which raise assets to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. There is no guarantee that the SPACs in which the Fund invests will complete an acquisition or that any acquisitions that are completed will be profitable.

TikTok is a rising power in the world of social media, so any bad news for TikTok is good news for companies like Meta and Twitter. At market close on Thursday, shares in the tech company had fallen nearly 25%, selling for under $98 apiece, a level not seen since 2016. It seems inevitable, then, that countless dozens of the world’s top companies will trust Adobe to guide them into the uncharted waters of the metaverse, much to the company’s success — and investors’ delight. As mentioned prior, many analysts have forecasted a recession and we are going through a downturn in the advertising market. A positive is the advertising market has historically been cyclical and thus a rebound in the future is likely.

These expansions will make Roblox an integrated platform that supports entertainment, learning, and work, signaling that belonging to Roblox will have its own metaverse ecosystem. Thus, it is considered a good choice to buy metaverse stocks of this company. Recently, two of the most exciting areas to invest in have been cryptocurrencies and the Metaverse. You can invest in cryptocurrencies and the Metaverse at the same time through Metaverse crypto or Metaverse cryptocurrencies. These would refer to cryptocurrencies and other digital assets like NFTs in the Metaverse space.

Where will Meta Platforms stock be in five years?

Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. Crypto is the currency of choice to purchase anything in the metaverse, including NFTs, and some of the most popular ones are Decentraland’s MANA, The Sandbox’s SAND, Star Atlas’ Atlas and Axie Infinity’s AXS.