Meta Platforms (NASDAQ:META)
As of 11:41 a.m ET, shares of Meta Platforms (NASDAQ:META) have increased by 4.9%. Despite a story in The Wall Street Journal that said Meta is falling short of internal corporate predictions for user growth in its metaverse platform, Horizon Worlds, the firm saw increases.
The stock’s low value before the release of third-quarter earnings was enough for investors to brush off the bad news. After dropping 60% this year, Meta stock price seems oversold.
What’s the Reason?
Mark Zuckerberg, CEO of Meta, is putting many resources into developing the metaverse even though the firm is shifting to short-form video formats and dealing with the fallout from Apple’s iOS privacy rules on its advertising business. The original goal for Horizon Worlds was 500,000 MAU by the end of the year, but now Meta stock is aiming lower at 280,000.
The digital advertising industry, from which Meta Platforms (NASDAQ:META) derives almost all of its income, has relatively low expectations. The income of the social media behemoth fell by 1% compared to the same period a year ago. The popularity of TikTok, a competitor to Meta, skyrocketed during the epidemic and has since been more formidable.
What’s Next?
What the metaverse will be, how it will be used, and when it will be ready for the masses are all mysteries. Yet, the only money it’s made for Meta is from selling Quest 2 VR devices. Fewer than 2% of Meta’s earnings come from the Reality Labs division, which includes virtual reality devices.
Right now, Meta stock investors are more concerned with the near-term trend of advertising revenue, which will be revealed in the company’s earnings release on Wednesday, October 26. Considering the stock’s low price-to-earnings ratio of 13.8, the company doesn’t need to see rapid expansion to justify the current value.
Meta Description
Recent research indicates that Horizon Worlds’ Meta stock is far behind the company’s internal growth predictions.
Featured Image – Megapixl © Waingro
Author Shariq Khan 
