The metaverse may not live up to the hype for years to come, but Metaplatforms (META) 1.86%† could still be a big player in augmented reality. In this clip from “Ask Us Anything” on Motley Fool Live† recorded on June 14thFool.com employee Jose Najarro discusses how the company’s use of AR will make money in a particular area.
Joseph Najarro: Investments in AR and VR, I’m not trying to say that the metaverse is the future, but I do think that augmented reality and virtual reality are going to play an important role in some form of advertising. We see a lot of companies saying, “Hey, if you want to buy this sofa, use your camera real quick to see how it fits in your living room.” I think again, I think augmented reality is going to play a nice role in advertising, where Meta Platforms makes most of its money.
They also invest in their core products. Even though some people say they are just copying, some of their competitors act like they don’t do a lot of short term videos on their platforms anymore which is a copy of TikTok. Ultimately, I believe it’s just another solution to their core products.
There have clearly been some bearish cases. Tough competition, TikTok currently plays a big role against their competitors. The metaverse in general may fail. Macroeconomics, things like this can slow down businesses, and with a slowdown in business, it could slow down the advertising side, and the slowdown in e-commerce right now. We do see a fair amount of ads happening in Meta Platforms solutions.
The last one is that they cannot adopt these iOS changes. I do believe that most of these bearish cases are shorter term, especially this macro economy. Things that can affect a year or two. But I do believe that Meta Platforms remains a very heavy player in the advertising world. So one that I enjoy 20% less than pre-pandemic levels, the company got more users and started new adventures as well.