3 Reasons This FAANG Stock Could Fall Further
Since the beginning of 2022, Meta's (NASDAQ: META) stock has been cut nearly in half. But based on current developments, Meta might have an even greater uphill battle to reclaim its previous all-time high of nearly $384 in September 2021. Meta has suffered from one specific tangible failure that showed up in its earnings reports and some lackluster rollouts that might not become evident until the next quarter.
Leading the way in recent failures was Meta's bust in the metaverse. The company's virtual reality division, Reality Labs, posted a loss of $2.8 billion. Yes, you read that right -- $2.8 billion. For a company that is heavily investing in building the metaverse -- so much so that it changed its name to reflect that decision (from Facebook to Meta) -- to post such a staggering loss this quickly should be raising red flags for investors looking to open new positions.
Two other recent developments, which are still in the process of being rolled out, may drag down future earnings. The first came in August when Meta Chief Executive Officer Mark Zuckerberg announced that the company would finally be making a leap into the world of crypto. Non-fungible tokens (NFTs) are set to be unveiled on Instagram first and eventually on Facebook in the coming months in more than 100 countries. The social media platforms won't be a marketplace to buy and sell NFTs but rather a place where users can show off their digital assets.
Source Fool.com
