$Meta Platforms, Inc.(META)$Is getting hit real hard due to the huge drop in profitability during the recent quarter earnings. The company remains aggressive in expenditure onmetaverse project which is not yet fruitful.
most Investors remain hopeful that the company family of apps would continue to do well over time but the risk that brought upon by the loss-making metaverse is still quite significant and shouldnt be ignored.
To regain confidence of investors, Meta needs to (1) give up on metaverse project, or (2) be able to turn metaverse project profitable , or (3) reduce spending on metaverse project.
Everything revolves around metaverse whether it will be a success or not. Personally I prefer option 3 Which is reduce spending as they need to retain more cash for shares buyback during a potential recession Which would give investors more confidence moving forward.
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