Is the Meta Stock a Good Bet for Investors in 2022?

Meta

It would not be an exaggeration to say that the social media and social networking world is incomplete without the major platforms provided by “Meta.” The Meta Platform, previously known as Facebook Inc, is the parent corporation of WhatsApp, Instagram, and Facebook, with around 3.6 billion active users. This figure amounts to roughly half the world’s population, manifesting the importance of this tech giant. 

The California-based company announced its rebranding decision on Oct 28, 2021, which brought about a 10% increase in the FB stock price. This name change came amidst the company’s decision to focus on “metaverse,” a virtual reality ecosystem where people could interact with one another. 

Why did the Meta stock face a bad start?

The Meta stock experienced a turbulent start with its name-changing event on Dec 1, 2021. To be exact, the FB stock was already under turmoil before the rebranding event due to negative reports released by Frances Hauge, a former employee of Meta Platforms, about the company’s harmful operating structure.

Haugen accused the corporation of unethical practices and prioritizing profits over users’ security, which greatly affected investor sentiments. In addition, the Omicron variant and uncertainties regarding the Fed’s decision of cutting off pandemic support also adversely impacted the stock’s prices. 

Room for growth

Virtual-Reality

It is undeniable that Meta Platforms provides a major social media network that connects billions of users around the globe. According to the corporation’s third-quarter report of 2021, its revenue increased around 35% from a year earlier. 

Moreover, analysts explain that the company’s rebranding is also an effort to overcome all the controversies and focus on introducing new services aside from social media. This commitment is evident from the Meta Platform’s statement to allocate around $10 billion in 2022 for expanding the metaverse technology. 

Keeping in view the potential and powerful network of Meta social media applications, it can be said that the recent sell-offs are “unfair” to the tech giant. Its online advertising revenue, along with new metaverse objects, would most likely propel its growth in the upcoming years. 

Make investing safe to some extent 

Long-term investors can look towards the Meta stock for achieving good returns over the coming period. The organization is set to transcend beyond the social media network and advertising, proving to be a lucrative investment option for investors.  

However, risk and unpredictability are integral components of investing; still, you can make it secure to some degree by choosing a reliable brokerage platform, if you wish to trade CFDs on popular stocks, such as Meta. TRADE.com is one such venture, offering a secure and cost-effective environment to trade various assets, including stocks and ETFs, with efficiency and ease. 

There are plenty of CFDs on stocks at TRADE.com with reasonable spreads and leverage up to 1:20. You can choose from around 2100 tradable securities through the broker’s CFD offering. Moreover, on the TRADE.com platforms, users can trade with advanced tools and resources.

Bottomline 

Meta Platforms’ recent metaverse approach can significantly drive its growth in the future. Despite coming under the crossfire of recent sell-offs, the company has the potential to rise towards further heights thanks to its massive user base and popularity. Investors can capitalize on this trend by investing in the Meta/FB stock with productive brokers like TRADE.com. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.