#META PLATFORMS STOCK SOFTWARE#

These are positive indicators for Oculus itself, but Reality Labs–Meta’s Metaverse division–isn’t limiting itself to VR.

#META PLATFORMS STOCK SOFTWARE#

Oculus, for example, is getting rave reviews, and its software component was #1 on the app store last Christmas. Some of Reality Labs’ products have shown promise. Many people think that the projects–AR glasses, VR headsets–are too much of a long shot to go mainstream. The Metaverse has been a major point of contention among META holders. There were no job cuts, but the freeze suggests that maybe the metaverse spending will remain a flat $3 billion per quarter instead of progressively growing, as was originally planned. Recently, Meta freezed hiring at several business units. However, we know that Zuck is making good on his word.

As of right now, there is no specific dollar value attached to the “slowing of pace of investments,” so we’re not sure what the impact will be. After the last earnings call, Mark Zuckerberg vowed to “slow the pace of investment” on Metaverse initiatives, which means that there is potential for Meta to beat on earnings in the next release. Its most recent quarter was about in line on revenue, missing on earnings mostly because of increased Metaverse spend. However, there are many reasons for optimism toward META stock.

If you had invested $10,000 in Meta at the start of the year, it would be worth about $4,900 today. Down 51% for the year, it is doing far worse than the NASDAQ-100. Meta Platforms ( NASDAQ: META) stock has been one of the biggest casualties of 2022’s bear market.

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