The concept of the metaverse has been around for a while. However, the past few months have seen a few big names starting to shift into the space.
There’s plenty of room for many companies to work in the space, whether in providing hardware, software, or ancillary services such as currencies. But one company that’s already dominating in one industry is looking to do the same in this new digital world.
That company is Meta Platforms (FB), which was recently renamed from its better-known social media division, Facebook.
In the past few weeks since the company announced it was changing its name, shares have been relatively flat. While the metaverse space is still early in its development, Facebook’s background in keeping users engaged could make it one of the big winners of the platform, and skeptics about the company are starting to turn around on shares.
Action to take: The core social media company is still growing massively, with revenues up 35 percent in the past year, and in posting a 36 percent profit margin. Investors can likely still make a great return owning shares of this company for the long haul, particularly if the metaverse project is even a moderate success.
For traders, the range-bound move in shares in the past few weeks leads to a buying opportunity as the latest Covid fears wane. The April $360 calls, last going for about $12.35, look like an attractive way to play a jump higher. The calls are a bit pricey, but should deliver mid-to-high double-digit gains in the next few months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.