Meta Platforms (NASDAQ: META) reported its third-quarter earnings on Oct. 26, giving the bears everything they needed to prove their point. It's not like Meta was performing well to date, either. Meta is down more than 70% for the year, including a 24% drop following the Q3 report.

However, don't let anyone tell you Meta Platforms' business is dead, as the company still produced $27.7 billion in revenue in Q3. But if you decide to invest, you must pay attention to these three red flags.

Perhaps the most controversial subject with Meta Platforms stock is its switch from a social media platform to one focusing on the metaverse. Before Facebook changed its name to Meta Platforms, it was a profit-generating machine that was growing rapidly. However, with the name change came a shift in business focus, a move that doesn't look like it's paying off so far.

Continue reading

Source Fool.com