Meta stock plummets 15% as company keeps losing money on Metaverse

Nvidia’s GPUs are also highly sought-after for offering 3D content in the metaverse. Investors will be pleased to know that Nvidia has already seen impressive growth in the video gaming and big data sector. The company is heavily involved in behind-the-scenes operations and supports other companies that create virtual worlds or products for the metaverse. Nvidia stock has risen by 980% over the past five years and is the main driver of the AI mega-trend in 2023. Formally known as Facebook, Meta Platforms (META 0.57%) is responsible for bringing the metaverse trend to the forefront of investors’ minds. Most of the how to buy metaverse stock company’s revenue is generated by ads on the Facebook and Instagram apps.

Meta Stock Soars as Company Returns Profits to Shareholders—Key Price Levels to Watch

Microsoft plans to purchase the gaming giant Activision Blizzard, https://www.xcritical.com/ which will be a key part of the creation of its own metaverse. Microsoft’s shares continue to perform well, with gains of more than 350% over the past five years. Metaverse stocks are considered companies listed on the stock market that are focused on the development of the metaverse.

Learn How to Invest in the Metaverse

Perhaps the metaverse is more akin to a massive communal cyberspace, linking augmented reality and virtual reality together, enabling avatars to hop seamlessly from one activity to the next, as The Washington Post puts it. While virtual reality is certainly a crucial facet of the metaverse, its an oversimplification to equate the metaverse with virtual reality alone. In April 2020, rapper Travis Scott brought over 27.7 million Fortnite players together to watch him perform a concert within a Fortnite game. Nearly a year later, a digital collage by artist Beeple sold for $69.3 million in NFT form.

The Facebook parent company beat earnings expectations but issued weak revenue guidance for the next quarter

This includes monitoring updates related to the platform’s features and capabilities, as well as understanding the broader implications of its role within the cryptocurrency and blockchain sectors. The platform also emphasizes the importance of user authentication, data encryption, and access control. User authentication ensures that only authorized users can access certain features or information, preventing unauthorized access. Data encryption protects the data transmitted across the network, making it unreadable to anyone who might intercept it.

How much is metaverse stock

Meta Platforms Insider Activity

How much is metaverse stock

The company reported revenue of $39 billion, just ahead of the $38.2 billion anticipated by analysts polled by FactSet. Kiplinger is part of Future plc, an international media group and leading digital publisher. Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more. Top holdings at present include several names on this list like Meta Platforms and Nvidia, as well as online gaming company NetEase (NTES) and Japan’s Nintendo (NTDOY). “And so it’s the idea that there is this environment that may be even better than just the real world – to overlay the virtual world on top of it might be an even better world,” Cook recently said in an interview with GQ. “And so this is exciting. If it could accelerate creativity, if it could just help you do things that you do all day long and you didn’t really think about doing them in a different way.”

  • The company’s strong performance continued after its impressive Q2 earnings report on July 31, with the shares up 12% since the release – pushing Meta stock’s total gains to around 77% over the past year.
  • While some of these metaverse projects are starting to get some traction, the assets you own in the metaverse may rise in value over time, but they also may become worthless.
  • The FoA segment consists of Facebook, Instagram, Messenger, WhatsApp, and other services.
  • The Metaverse allows investors to invest in land and property that exists in a digital world.

Meta stock sinks 10% because Mark Zuckerberg still spending and losing tons of money on the Metaverse

Alternative Assets.Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in a Public Investing brokerage account and are self-custodied by the purchaser.

Different types of metaverse investment

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. While META stock has already surged considerably, the company’s focus on AI, and its ability to drive user engagement and ad revenue, are compelling reasons to consider investing in Meta now.

Of course, Arweave isn’t the only decentralized project thinking about data storage. But its endowment pool payouts encourage long-term data storage, and that’s a clear differentiator here. In many other cases, users pay crypto miners up-front fees to store data for a limited period of time.

How much is metaverse stock

Funds investing in the metaverse (Metaverse ETFs)

“We’ve made a lot of progress on our vision for advancing AI and the metaverse,” Meta founder and CEO Mark Zuckerberg said in the company’s earnings statement. “We expect our ambitious long-term AI research and product development efforts will require growing infrastructure investments beyond this year,” he added. As you’ve already noticed, there’s an abundance of virtual assets that are tied to a metaverse. But while all these metaverse investments sound promising, try to keep in mind that some platforms will become more popular than others. The concept of a metaverse is still not complete, and most guides on how to invest in the metaverse provide merely speculations.

It’s positioned as one of the leading companies in the virtual world of the metaverse. It achieved rapid success by listing at $41.9 billion and reaching a valuation of $45 billion a month later. Roblox metaverse has hosted 3D concerts for Hollywood stars like Lil Nas X and David Guetta.

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How much is metaverse stock

He certainly understands that the company needs to evolve to stay competitive. Afterall, the tech industry is littered with companies that have failed to do so, including Yahoo! and Myspace. In fact, there are some members who make a living operating their virtual worlds. Snap (SNAP, $8.55) isn’t the first stock that comes to mind when thinking of the best metaverse stocks. Snap CEO and cofounder Evan Spiegel has said before that does not like the term “metaverse,” yet he still is pursuing many of the core concepts of this category.

Devices like smartphones, virtual reality headsets, and digital glasses will enable users to access 3D virtual and augmented reality environments. They can connect with friends, conduct business and visit remote locations. But most of the features that the metaverse is supposed to have are still under development.

Maybe you can’t decide which metaverse stock to buy, or maybe you want broader exposure than a single stock. One option is the Roundhill Ball Metaverse ETF (METV 0.0%), which includes all five of the stocks already listed here plus dozens more, providing instant diversification for shareholders. One of the main drivers of the metaverse is the increasing affordability and accessibility of virtual and augmented reality technology. As these technologies become more widespread and sophisticated, it is likely that the metaverse will become an increasingly important part of our daily lives. The company is making what amounts to a wildly expensive bet on its ability to transform into a virtual reality behemoth and whether that technology can power the next phase in Meta’s growth.

There have been more than 24 million 3D experiences available for Roblox users. In Q4 2021, Roblox saw 49 million users per day, which was an increase of 33% compared to 2020. Although the company has yet to make a profit, engagement hours are up by 35% year over year. Investments in stocks, options, ETFs and other instruments are subject to risks, including possible loss of the amount invested. The value of investments may fluctuate and as a result, clients may lose the value of their investment.

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