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These are tumultuous times for the meta, with investors fleeing the stock and the metaverse having real struggles and other economic headwinds. Since peaking in September 2021, the company has lost two-thirds of its value. At the end of September, the stock fell to its lowest trading since January 2019 — and fell further. It has lost more than 60% year-to-date. Users are jumping ship and advertisers are cutting back on spending, with Meta set to report its second straight quarterly revenue decline. Meta lost $2.81 billion on revenue of $452 million from its virtual reality department in the quarter ending June — as it spent heavily on developing virtual reality and adding virtual reality products. Even then, the company still dominates mobile advertising and has one of the most profitable business models on the planet. Despite a 36% drop in net income in the latest quarter, Meta posted a profit of $6.7 billion. Two tech investors faced off on CNBC’s “Street Signs Asia” on Wednesday to discuss buying and against the stock. Why Buy Meta has a “real opportunity” to succeed, CEO Mark Zuckerberg said, “looking at the long-term path and viability of the company,” said Jake Dollaride, CEO of Longbow Asset Management. “So it’s a change in the metaverse that he wants,” he said. “Using AI [artificial intelligence] The way they use AI, I think they have a real chance to succeed, or at least right the ship. The company is in the metaverse. “I’m really excited about what’s going to come out of the mix with WhatsApp and Messenger and Instagram — people talking to each other. Throw in the ability to buy a pair of Nikes and the strategic partnership with all these different companies. It’s really a different world,” Dollarhide said. He added, “I don’t play with Zuckerberg like I don’t play with Elon Musk. The adversarial approach is one of the reasons to get into the meta, Dollarhide. “I want to. To buy low selling, I’m more of a contrarian game. If something is really out of favor I have to bet on it… and make good money for my clients. “Meta is relatively cheap. I think there’s some real pain in the stock that’s already been anticipated,” said Paul Meeks, portfolio manager at Independent Solutions Wealth Management. You can’t be a contrarian investor unless you know it’s going to stop falling, and I think buy it now.” “It has a lot of upside potential,” Mex said. “Even though it’s an exciting industry, you know the meta contribution could be hardware, and hardware is very low margin compared to the legacy business,” he said. Citing the example of virtual reality headsets: “In the meantime, their legacy business is falling off the cliff, they’re losing share to TikTok. And the digital ad business, at least in the U.S., is going down and will continue to go down because we’re in a recession.” Meeks added that there are much better opportunities in the technology sector, such as large-cap stocks, which have “very bright futures.”
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