Why the metaverse is good — even if Meta stock says otherwise: analyst

Meta has no choice but to spend billions of dollars on building out the metaverse if it wants to control its future, Goldman Sachs tech analyst Eric Sheridan argues.

“Taking a step back from the recent stock performance (both year to date and in the after-market), we see platform/infrastructure investments by Meta (which started in mid-2020) as both a) continuing to build independence from a volatile range of outcomes from future mobile OS platform changes; and b) aligned with a strategic shift toward short-form video and from the social graph to the interest graph,” Sheridan wrote in a note to clients on Thursday.

Nevertheless, Wall Street continues to have a bone to pick with the digital world being created by Mark Zuckerberg dubbed the metaverse.

Meta stock crashed 22% on Thursday as the Facebook and Instagram owner continued to spend aggressively to build out its metaverse. The build out contributed to a 1,600 basis point plunge in Meta’s third quarter operating profit…

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