In this post, we take a close look at Meta's Q1 results, released last Wednesday. Shares sold of by double digits, potentially offering investors an opportunity to buy!
Exactly! I believe I read somewhere that stocks are reacting surprisingly negatively to solid results this quarter. Perfectly highlighted in these two examples.
Nicely done. I’m inclined to believe you but think they really need to do something with their metaverse division, Reality Labs. Cumulative operating loss since 2020 is now $46 billion ($3.5 billion in Q1). Just an elephant graveyard of capital.
They need to have a end game here. With any VG hardware typically the software and services drive the bulk of the profits. It needs to get to a high level of penetration or it’s truly a graveyard. That’s what gives me pause investing here, that other companies don’t have a drag like Reality Labs.
Great commentary Daan.
Post earnings movements lately have just been insane. Look at $SOFI yesterday. Opportunities galore.
Exactly! I believe I read somewhere that stocks are reacting surprisingly negatively to solid results this quarter. Perfectly highlighted in these two examples.
Nicely done. I’m inclined to believe you but think they really need to do something with their metaverse division, Reality Labs. Cumulative operating loss since 2020 is now $46 billion ($3.5 billion in Q1). Just an elephant graveyard of capital.
They need to have a end game here. With any VG hardware typically the software and services drive the bulk of the profits. It needs to get to a high level of penetration or it’s truly a graveyard. That’s what gives me pause investing here, that other companies don’t have a drag like Reality Labs.
That seems to be the issue indeed - we have absolutely no idea where all these billions are going and how it is going to pay off.
If its the Quest or RayBan glasses, I am not here for it and its just a cash dump.
Anyways, I would most certainly prefer it to scale back these investments or focus it on AI, which seems like a far more concrete opportunity.