Meta Platforms will definitely find other ways to capitalise on the money it spent to bring the metaverse to life. In the same way, the company has used its algorithms to convert data and direct its advertising efforts.Īlso, let’s consider the development of virtual reality (VR) and augmented reality (AR) that has a lot more applications than an all-encompassing virtual world (metaverse) with uses in healthcare, education, and entertainment, among others. Meta Platforms has a long history of developing artificial intelligence (AI) to recognise people in photos and recommend content for users of its social media platforms. Even so, the same technologies that focused on this virtual domain have other potential profitable applications. Not everyone believes this was a profitable investment. Over the previous two years, Meta Platforms has invested almost $24 billion to bring this vision to life. The metaverseĬEO Mark Zuckerberg’s recent focus on the metaverse turned heads. However, this dark cloud has a silver lining as once the economy starts to recover, the digital advertising spends will increase and the ad dollars will flow again. The downturn and the well-known decline in ad spending have hit Meta Platforms hard. Meta Platforms is the world’s second-largest digital advertiser, with approximately 20% of the market, according to Digiday. Advertising budgets are the first to be cut in times of economic uncertainty. This is because Meta Platforms gets nearly all its revenue from the digital advertising that appears on its platform. Without a doubt, the economic headwinds that began in late 2021 have hindered the company’s growth. Is the stock still worth investing in? The decline in ad spending has hit Meta Platforms hard Actually, since it appeared as Facebook just over 10 years ago, Meta Platforms has gained a huge 375%!ĭue to its massive gains over the past 10 years, investors are probably wondering if they’ve already missed out on Meta Platforms. However, in comparison to its long-term performance, this is just the tip of the iceberg. It has shown renewed strength since rallying from early November lows. Having lost more than 50% of its value last year, Meta Platforms (META) has made a comeback with shares up approximately 51%. The company’s total operating income was $5.664 billion, down about 45% in comparison to the year-ago quarter.Ĭompetitors of Meta Platforms include Alphabet Inc.’s (GOOGL) Google, Apple Inc. Revenue fell 4% year over year (YOY) in Q3 FY 2022. However, Meta stock is picking itself up after posting a net income of $4.4 billion on $27.7 billion in total revenue for Q3 of its 2022 fiscal year (FY).Īround 98% of the quarter’s total revenue was advertising revenue.The rest of the revenue came from the company’s Reality Labs segment and other sources. In 2022, Meta stock dropped from a 384 intraday high in early September 2021 to an 88.41 low when it reached its lowest point at the end of October 2022 last year. It is one of the Big Five American information technology companies, as well as Alphabet (Google), Amazon, Apple, and Microsoft. Meta is one of the ten largest publicly traded corporations in the United States. The company is based in Menlo Park, California and owns Facebook, Instagram, and WhatsApp, as well as other products and services. Meta Platforms, Inc., originally named Facebook, Inc., and TheFacebook, Inc., is an American multinational technology conglomerate. Read on to learn more about Meta Platforms, how it crashed in 2022 and its comeback in 2023. Investors wiped $80bn off the market value of Meta after Mark Zuckerberg’s company reported profits had halved during the third quarter as advertisers controlled their spending due to the global economic downturn. This was the biggest fall among the big five tech companies. Users can share information, ideas, photos, and videos through its platform and applications. It’s also used by political organisations, small businesses, and large corporations to reach a wide audience. Facebook is well known as a site for friends and families to connect. It provides a digital social media platform allowing billions of people to connect with one another. (META) isthe company that owns Facebook and is the world’s largest social network.
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