Important things to know about the Meta Platform before you buy or sell Meta shares.

With the advent of technology, companies have worked progressively towards Virtual Reality. Meta platform is one of the leading companies in technologies such as virtual reality but is it a good investment opportunity? Read to know more about the Meta platform and whether you should invest.

Important things to know about the Meta Platform

Virtual reality was once a dream for every tech enthusiast around the world. However, with the launch of Meta Platform, formerly known as Facebook, it has become a reality. Meta platform incorporates the famous social media platform “Facebook” and has been a topic of discussion for its developments in virtual reality. It is a technology company which wants to connect people across the world in a virtual world known as “Metaverse”.

What are the things you should know about the Meta Platform?

The Meta platform, as interesting as it sounds, has certain attributes which a smart investor must know before looking to invest in the platform:

1. Metaverse is too expensive to build
It has become clear to investors that Metaverse is the ultimate goal for Mark Zuckerberg. The investment in Metaverse has reached 36 billion dollars, yet it remains to be finished. The investment will continue to increase in the upcoming years, and speculations are that the Metaverse will be too expensive to build. The investment in R & D increased by 33 percent in the last quarter.

2. The cost of R&D is deteriorating meta’s profits and free cash flow
The high cost attributed to building the Metaverse is an investment that some investors accepted, but the company's earning results have made them doubt their decisions. The company’s investment in Metaverse is drastically reducing profits and cash flow. In almost a year, the company's free cash flow has come down to 317 million dollars from 12.8 billion dollars. 

3. Meta shares are an investment in Mark Zuckerberg.
Regarding the structure of shares for Meta, it has been designed to give 57 percent of the voting shares to Mark Zuckerberg. This means that the investors cannot remove him from the CEO position even if the company starts going down due to the investments in Metaverse.

What are the latest updates on Meta Shares?

Following are the latest updates on Meta Shares from the financial market:

1. The performance of the shares has declined over the past few months. The price of the share declined by 24 percent in October.

2. The price of the Meta share was 138 dollars per share on 5th October, whereas on 4th November, the price came down to 90.79 dollars per share.

3. The inflation rate in the US has reached 8.2 percent, which has added to the doubts of investors looking to trade Meta shares as they don’t want to risk their money.

4. As the report by MarketBeat suggests that 29 out of 50 financial companies suggest that investors purchase the share, 18 suggest holding, and 3 suggest selling.

Also, Watch Meta platform Stocks. 

Whether or not the Meta platform would turn out to be a good investment remains to be seen. The company run by Mark Zuckerberg can become one of the most successful companies in Virtual Reality if it succeeds in its goals. Investors should invest if they have faith in the CEO, as it can become a highly profitable investment down the road.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.


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