Rumors circulated that Apple (AAPL) will launch an augmented reality product for around $3,000 or more. This will rekindle investor interest in the metaverse, AR, and virtual reality space. Although Meta Platforms (META) renamed Facebook to Meta, Apple is highly influential in turning products into mainstream ones.
Apple is worth considering if shares dip back to the $130 level. The P/E is around 26 times, which leaves investors a minimal margin of safety.
Meta shares bottomed at below $100, climbing to nearly $200 when the company announced its 2023 year of efficiencies. Markets piled onto META stock after the company prioritized on costing cuts. It also laid off 11,000 employees. Shareholders might assume that staff earned an average of $250,000 to $300,000. The staff reduction will offset the slowdown in advertising revenue.
Meta may divert its cost savings to spend billions on its metaverse.
Roblox (RBLX) is an established gaming ecosystem for young users. It posted bookings growing by 16.8% to $899.4 million. The stock rallied after posting revenue of $579 million, up by 2% Y/Y. It lost 48 cents a share.
Among the three stocks, Apple is a better buy at lower prices, Meta is a stock to watch and Roblox is a stock to avoid. Wait until Roblox is profitable first.
