Meta stock (FB) oversold bounce couldn’t erase Q1 losses — what’s ahead?

Key Takeaways:

  • Meta Platforms, the former Facebook Inc., saw its stock FB halve its value in 6 months.
  • The company aims to move further into the crypto-sphere.
  • Experts estimate long-term growth for Meta.
Meta, Meta stock (FB) oversold bounce couldn’t erase Q1 losses — what’s ahead?
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YEREVAN (CoinChapter.com) – Meta Platforms, the former Facebook Inc., saw its stock (FB) at $222 in the Asian-Pacific session on April 1. The stock had previously bottomed out on March 14 and recovered 20% of its value. But, notably, the bounce didn’t come close to erasing the February damage.

Meta Platforms Inc. (FB) daily chart. Source: TradingView.com
Meta Platforms Inc. (FB) daily chart. Source: TradingView.com

In hindsight, the February crash was triggered by tech giant Apple Inc. The company announced new privacy features on iOS 13, heavily limiting the number of ads displayed to the users.

Mark Zuckerberg, Meta’s CEO, came forth with a statement on February 2, asserting that Apple’s changes and new privacy regulations represented “a clear trend where less data is available to deliver personalized ads” and that the new policy would cost Meta “$10 billion in lost sales this year.”

Also read: More trouble for crypto ads on Facebook ahead — here’s why

Meta’s stock plunged 26% on February 3 in response to the CEO’s estimations, bringing the overall losses to 50% in the previous six months. The company’s Q1 earnings report will be available in late April and could shed further light on whether Q2 estimations have merit.

Meanwhile, Meta could be planning several ‘escape routes’ to offset the Q1 damage.

Meta to launch a crypto exchange?

Mike Kondoudis, a trademark lawyer, specializing in NFT and metaverse trademarks, shared several trademark numbers on Twitter that suggest Meta’s interest in launching a crypto exchange. In addition, the company has filed eight trademark applications revolving around currency trading, crypto tokens, and blockchain software.

Also read: 77% of U.S. consumers pick blockchain over Facebook-owned metaverse — study.

Moreover, Meta has also filed for trademarks of new names, such as Meta Portal and Meta Horizon, to cover social networking, and mixed reality software.

In detail, a metaverse-focused exchange would be a logical next step, moving the company closer to its targetted meta-presence.

Meanwhile, Brian Kapp, the co-founder of Stoxbox Investment firm, discussed Meta’s prospects in the current quarter.

What to expect in Q2?

The expert commented on Meta’s difficult position in 2022, given 2021’s overachieving advertising revenue.

The metaverse product and service offerings are likely to experience step change-like growth patterns as completely new and even revolutionary products and services are brought to market.

Kapp asserted.

The expert further affirmed that the growth would be difficult to predict. However, he also estimated that Meta’s Reality Labs offers “some of the largest growth prospects in the innovation space for the coming decade.”

Also read: What Facebook effect? Metaverse tokens log middle-finger rallies against Meta’s falling stock value.

As for the profitability of holding FB stock, the CEO asserted that it “makes perfect sense” for a long-term shareholder.

The aggressive investment plans for 2022 at the beginning of a secular growth S-curve in the VR/AR industry makes perfect sense from a long-term shareholder perspective. That said, the short-term profitability trend will experience a materially negative impact as a result.

added the expert.

Kepp further mentioned Meta’s blue-chip position, which offers a “rare asymmetric growth opportunity.” He added that the shares have “incredibly strong” fundamental and technical support, while the Metaverse opportunity is unbounded to the upside.

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Meta, Meta stock (FB) oversold bounce couldn’t erase Q1 losses — what’s ahead?

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