I'm down nearly 50% on my initial investment in Meta $META as the stock continues to crash. Did I make a mistake? Meta is spending over $10 billion a year on the Metaverse while the issues continue for their ads business. Whether the Metaverse will be a success or not is still uncertain, with Michael Burry calling it a New Coke problem.
What we need to focus on is the ads business to find the intrinsic value of Meta. Then, from this, we give a negative value to the Metaverse business because right now, the company is lowing money on this.
For the ads business, there is competition from TikTok and Apple $AAPL and Google $GOOG is making it harder for Facebook to collect your data to target you with ads but still, Facebook remains a company with a good balance sheet and enough resources to navigate these effects.
Is Facebook stock undervalued?