The Meta Dilemma: Great Business, Questionable Spending

Summary:

  • Meta’s recent earnings were mostly positive, with consistent growth in Daily Active Users and an uptick in Monthly Active People.
  • Reality Labs, Meta’s venture in virtual reality, is facing challenges with declining revenues and high expenditures.
  • Meta’s strengths lie in software, and its future strategy should focus on its flagship products to increase cash flow margins.

Business man using VR goggle

MangoStar_Studio/iStock via Getty Images

I initially wanted to write this article with a more positive title. Although I’m still optimistic about the stock and very bullish on Meta’s (NASDAQ:META) future, today I need to discuss the company’s recent earnings.

Yes, the


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