That’s what value investors claim Meta platforms seriously underrated and at current prices perfect purchase as a reverse investment is. Sure, on the surface META stock looks dirt cheap.
After shares of the tech giant, parent company of popular social media platforms such as Facebook, Instagram and WhatsApp dropped by more than 70% in the past year, they just agree Traded at 9 times profit. This is a extremely low valuation for a technology stock and several times lower than that of the S&P 500, which has a price-to-earnings ratio (P/E) of 19.8.
But before investors follow the example of the value crowd and bring in META as a Metaverse investment, remember that there’s a good reason why Wall Street devalued the stock so much.
Metaverse stock disappoints in 2022
Meta Platforms isn’t the only major tech stock to plummet over the past 12 months. Macro factors have pushed mega-cap tech stocks significantly lower since November 2021.
However, compared to its competitors, the META share has experienced the strongest price decline. Like similar names, stocks have been hit by rising interest rates. Higher interest rates have led to significant declines in mega-cap tech stocks. The stock has also been hit by growing recession fears.
The recent economic slowdown has already had an impact impacted Meta’s ad-dependent revenue model. In the last fifteen minutes he went Turnover 4% lower than last year. Declining demand for digital advertising could get worse if a recession hits in 2023. However, in addition to these challenges, there is another huge one Uncertainty about this Metaverse stock.
And that’s Meta CEO Mark Zuckerberg’s willingness to always bring in more money investing failed metaverse. In addition to changing the company name of Facebook Inc. in Meta Platforms, Zuckerberg remains the number Business growth expenses related to metaverse.
This plays a major role in this Meta’s profit drop of nearly 50% played last quarter. An additional increase in Metaverse spending should weigh on both operating and price performance.
Why meta is not a good metaverse investment
META stocks are cheap for a reason. Assuming the few successful Metaverse editions of the company, it is a misleading statement to say that this stock only trades at a single-digit earnings multiple.
In the coming quarters, the economic downturn continues to impact Meta’s sales. Combined with rising operating costs via the Facebook metaverse there is a good chance that earnings per share (or EPS) will decline in 2023.
The average forecast for Metas 2023 EPS is currently $7.72. The lowest estimate is for earnings per share of $4.96, which may indicate that META shares are currently trading at fair value.
For this reason, investors seeking a want to take a position in a Metaverse company, Move away from meta and rather look around for alternatives.
The best meta-stock alternatives
It is no longer news that cryptocurrencies have increased in recent years was one of the best investments. Despite the great risk associated with their volatility, cryptocurrencies have emerged as one proved to be a viable investment option.
Cryptocurrencies, metaverse coins and the blockchain are closely related to the Metaverse theme. For this reason, investors who want to invest in the Metaverse should take a closer look at the following cryptocurrencies.
calvary
That Calvaria Metaverse NFT game is one of the newest play to earn card games, taking the crypto market by storm. The presale of Calvaria (RIA) tokens is progressing rapidly, proving that Calvaria is a promising investment.
Within a few days, Calvaria gathered in advance sales more than $1.5 million and attracted the attention of many investors. Calvaria’s presale is still ongoing, allowing investors to get in early embark on an exciting Metaverse project.
Calvary makes it possible Players to compete against other players online to earn non-fungible tokens (NFTs) in the form of trading cards. These cards can be bought, traded and sold in-game to earn the in-game currency called $RIA. This currency can be exchanged for real money at any time, so that players have a chance earn money by playing Calvaria. In addition, in-game players can purchase $eRIA, which is used to level up cards and purchase in-game resources.
?Calvaria: Duels of Eternity? was from one Developed by a team of cryptocurrency and blockchain experts along with experienced game developers and programmers. This unique game is intertwined with the Metaverse and cryptocurrency systems, making players can benefit from their game in real life.
Now for the Calvaria presale
tamadoge
Tamadoge is also one Play-to-Earn (P2E) Metaverse game. In Tamadoge, players can breed and care for pets and compete with them against other players. Tamadoge’s metaverse is called “Tamaverse” and is represented by the in-house TAMA token driven.
Of the Tamadoge presales grossed $19 million in less than eight weeks what an incredible achievement. The Tama Store sells Tamado pets ? which have unique stats, strengths and weaknesses and are coined as NFTs. Players can get TAMA Tokens by playing Tamadoge and battling other players. The TAMA Crypto won can be used to buy pet care and food items from the Tama store or sell them for real money.
Tamadoge developers announced earlier this week that they are releasing a Common NFT collection launched. OpenSea is the largest NFT marketplace in the world and the game developers have confirmed it will host the collection. Players can interact with the 20,000 NFTs in this collection in the Tamaverse.
fight against infinity
Battle Infinity is one of the most innovative Metaverse blockchain projects. The project not only offers plenty of play-to-earn features, but also decentralized finance functions. This is how it starts decentralized exchange battle swap on November 16, which should boost IBAT tokenomics.
the Blockchain gaming platform Battle Infinity continued to attract much attention. The game platform allows players to non-fungible tokens (NFTs) to buy, representing real athletes. Players can use the NFTs to create teams and compete against other players.
The Battle Infinity game allows players to compete for points. The team earns points based on how players within the team perform in the real world. A player’s NFTs earn points based on a player’s changing performance. At the end of a season, the team with the highest points wins and receives a reward in the IBAT, the native Metaverse token of the Battle Infinity platform.