‘Mark Zuckerberg is telling us he doesn’t think he has a core business’: Meta Analyst

Facebook parent company Meta Platforms (META) stock is getting cooked as the technology company spends money manufacturing virtual reality hardware, generating awareness, and finding friends for a future in the metaverse.

The advertising budgets of its customers are tightening as companies restructure costs amid macroeconomic challenges — which even leads an optimistic analyst to say the third quarter for Meta Platforms is ‘make or break’.

“I think the stock is back to questions around, really, core fundamentals,” AB Bernstein Senior Analyst Mark Shmulik told Yahoo Finance. “Folks can understand that that’s [the metaverse] like a more long-term initiative. I imagine investors would love it if they were spending a lot less on it.”

Advertisers tend to run digital marketing campaigns where the largest audience, targeting capabilities and conversion rates reside — for a decade, Meta subsidiaries Facebook and Instagram have been that venue. Corporate budgeting during…

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This article was written by and originally published on finance.yahoo.com