When Facebook’s (FB) reputation weakened after an insider accused it of knowingly promoting harm to users on Instagram, the firm changed its name. The Meta announcement helped lift FB stock from $310 to $350. Although it erased those gains last week, Meta stocks are a rising opportunity.
Metaverse is a rebranding of virtual reality and to a lesser degree, augmented reality. In the last decade, the tech sector tried but failed, to push users away from consoles and smartphones and on VR platforms. Investors seeking meta platforms should consider the gaming sector.
Roblox (RBLX) stock rose by 30% after posting strong earnings. Daily active users in the 13 and over age group rose by 48% year-on-year. Its Q4 will buck the trough. Growth momentum continues, thanks to a growing user base, higher monetization, and engagement rates.
Unity (U) pulled back from a $210 high recently. The firm sold $1.5 billion in convertible notes when the stock peaked. It closed its Weta Digital acquisition on Dec. 3. Weta provided visual effects for blockbuster movies like Load of the Rings and Avengers: Endgame.
Meta stock is also trading at a relative discount. The stock broke its uptrend in September. Selling pressure will ease as the company reports growing ad revenue in the next quarter.
