Meta, formerly known as Facebook, is a social networking platform that allows users to connect with friends, family, and communities. Founded in 2004 by Mark Zuckerberg, Meta has grown to be one of the largest social media platforms in the world, with more than 2.8 billion monthly active users as of September 2021. Over the years, Meta has evolved from a simple web2 social network to a web3 metaverse. that seeks to redefine the way we interact with the digital world.
Web2 to Web3: the evolution of Meta:
Web2 refers to the second generation of the World Wide Web, characterized by the rise of social networking platforms, cloud computing, and mobile devices. Meta, as a social networking platform, was born in the Web2 era and quickly became the dominant player in the market. However, in recent years, a new era of the web has emerged: Web3.
Web3 is often referred to as the decentralized web, where users have greater control over their data, and platforms operate on a decentralized infrastructure, powered by blockchain technology. This new era of the web seeks to address the issues of centralized control, data privacy, and censorship, which have plagued the Web2 era.
Meta has recognized the potential of Web3 and is working towards building a metaverse that incorporates blockchain technology, virtual and augmented reality, and artificial intelligence. The metaverse is a virtual world that offers a shared space where users can interact with each other and the digital environment. The metaverse is seen as the next frontier of the internet, where users can experience a more immersive and interactive digital world.
Meta’s foray into the metaverse began with the acquisition of Oculus VR in 2014, a virtual reality company that produces the Oculus Rift headset. With the acquisition, Meta gained access to cutting-edge technology that allowed for more immersive experiences in virtual reality. The company also launched Horizon Workrooms, a virtual reality meeting platform that allows remote teams to meet in a shared virtual space.
Meta’s vision for the metaverse is not just limited to virtual reality. The company is also exploring other technologies, such as augmented reality and blockchain, to create a more complete and decentralized metaverse. For example, Meta is working on a blockchain-based digital identity system that will allow users to have greater control over their personal data and identity online.
The Metaverse will also incorporate NFTs (non-fungible tokens), which are unique digital assets that can be bought, sold, and traded on a blockchain. NFTs have grown in popularity in recent years, with digital art and collectibles selling for millions of dollars. In the metaverse, NFTs can represent unique digital items, such as virtual real estate or clothing, that users can buy and sell.
Meta’s move into the metaverse represents a significant shift in company strategy. The company is no longer just a social media platform, but is positioning itself as a metaverse company. The metaverse offers Meta a new source of revenue, beyond advertising, and allows the company to take advantage of the growing demand for immersive digital experiences.
Challenges and concerns
While the metaverse offers many opportunities, it also presents several challenges and concerns. One of the main concerns is the issue of decentralization. Web3 seeks to address the issue of centralized control, but it remains to be seen if the Metaverse will be truly decentralized. Meta, as a company, still has significant control over the platform and there is a risk that the metaverse will become another platform for centralized control.
Another concern is the issue of data privacy. Meta has come under scrutiny in recent years for its handling of user data, and there are concerns that the metaverse could exacerbate these problems.
TA: The first thing to note is that META’s stock price has been in an uptrend since March 2020. The stock has been making higher highs and higher lows, indicating that buyers are in control. However, there have been periods of consolidation, where the stock has traded sideways, indicating a lack of direction.
In August 2021, META’s stock price broke out of a period of consolidation, surging to an all-time high of $377.55. Since then, the stock has retraced, and is currently trading around the $300 level. The retracement has brought the stock price back to a key support level at around $290.
The 50-day moving average (MA) is currently above the 200-day MA, indicating that the stock is in a bullish trend. However, the stock is currently trading below both the 50-day and 200-day MA, indicating a short-term bearish trend.
The Relative Strength Index (RSI) is currently at 47.58, indicating that the stock is neither overbought nor oversold. The RSI has been trending lower since early November 2021, indicating a bearish momentum, but in the short term, the price could have an upward movement looking for the previous long-term trend support zone
The Moving Average Convergence Divergence (MACD) is currently in negative territory, with the MACD line below the signal line. This indicates a bearish trend. However, the MACD line has recently crossed above the signal line, indicating a potential reversal in the trend.
The Fibonacci retracement levels can also provide some insight into potential support and resistance levels. The stock has retraced to the 38.2% Fibonacci retracement level at around $295. If the stock price continues to decline, the next potential support level is at the 50% Fibonacci retracement level at around $279. The $279 area is very important and the price, now below $200, in areas of $185, could continue to push upwards.
In conclusion, META’s stock price after the last increases in these weeks, before the European summer, it could reach areas close to 250 or higher.
Not Financial Advice.