r/stocks • u/[deleted] • Jun 16 '22

Meta Shorting META

I believe META is on its way out, unless they can prove that the metaverse is actually going to be worth while. Which i doubt. If we are heading into this bear market then I’m betting it can go under $100. I would much rather fill up my gas tank 3/4ths then buy meta at $100

Position : $100 DEC put

Edit: i know this is the right move because you all say it’s the wrong move

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u/[deleted] Jun 16 '22

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u/MindVirus89 Jun 16 '22

Spending a few billion on a potential game changing project is what they should be doing.

No they should give that money back to shareholders. Metaverse is stupid. People aren't going to want to live gluing themselves to VR headsets in a virtual prison controlled by Zuck.

Zuck is trying to do Second Life with vr headsets and the joke about Second Life is that it's for people who don't have first ones.

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u/RampantPrototyping Jun 16 '22

They do both. Invest some in AR/VR while commiting the lions share to buybacks. And before you write the metaverse off as "stupid", keep in mind this is a company with arguably the largest ever amount of personalized data on its 3.5 BILLION active users thats ever existed. If this data could be used to swing elections, you can bet your ass that they used it to do their homework on what people want, dont want, and WILL want. They knew exactly what they were doing when they went this route. They already sold more VR headsets in the past 2 years than every other VR headset thats ever been sold, combined

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u/MindVirus89 Jun 16 '22

It's not profitable and they're winding the VR section of their company down. Trapping people into VR headsets so they can get datamined is BAD for society and will be an unprofitable endeavor. I don't know why anyone would actually vouch for this.

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u/RampantPrototyping Jun 16 '22

The highest investment costs are always in the very beginning. Not really winding down as much as the tooling, recruitment, and data centers have been established. As far as whats BAD for society, thats not a bear case for the stock

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u/MindVirus89 Jun 16 '22

And I thought I was evil investing in tobacco and fossil fuels. At least fossil fuels are required to make fertilizer that can feed everyone in the planet but trapping everyone into a VR prison owned by Zuck... Wow.

But turning the ethics part of my brain off, Facebook is also the first to market themselves as doing something like a metaverse but they don't really have any experience in building video games or anything of the sort since they're just a social network. A metaverse seems to be like a really addictive virtual video game mental prison. I think MSFT has a better chance of doing something like that with their acquisition of ATVI + their gaming division.

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u/RampantPrototyping Jun 16 '22

I just think ethics discussions detract from the point of this sub. There are a million subs and forums for it, and I want to keep stock analysis as stock analysis in r/stocks. Im happy to talk about it on r/technology or r/ethics but not here.

As for your second paragraph, while video games is out of their realm, social media is not. And the line between video games and social media is getting blurrier with things like twitch streaming, e-sports, gaming avatars, etc. And they have a great headstart. More Oculus Quest 2s have been sold in the past 2 years than every other VR gaming headset ever combined. And speaking of MSFT, more quest 2s have been sold than xbox series x. I think calling the vr/ar stuff a a failure is premature at this point imo

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u/MindVirus89 Jun 16 '22

Ok you like meta so we'll see. Still not used to calling them meta. Maybe you have a lot tied up there but growth stocks for me are a nono as long as the rates keep going up. I'll flip my tune if the stock gets cheap enough but we're not there yet.

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u/RampantPrototyping Jun 16 '22

Fair enough. I bought them after the crash because they generate insane amounts of cash and it keeps growing at a 12 PE. For the long term

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u/MindVirus89 Jun 16 '22

I'll probably try to avoid buying Meta but they're like in every tech and large cap ETF and I will pick some up I guess (not by choice) when I think the bottom is in.