Meta Plans To Lose Even More...

Our top 2 picks for November You are receiving this message because you have visited Daily Picks 365 and requested to receive daily market updates, If you no longer wish to be contacted, please click the removal link [here](. [Meta Plans to Lose Even More Money Building the Metaverse While it's Ads Business Shrinks]( [Click here to read full article.]( CEO Mark Zuckerberg reiterated his commitment to spending billions of dollars developing the metaverse amid investor concern about the health of his company’s online advertising business. On a call with analysts as part of Meta’s third-quarter earnings report, Zuckerberg and other Meta executives fielded a number of questions from analysts who sounded increasingly frustrated with the company’s rising costs and expenses, which jumped 19% year over year to $22.1 billion during the quarter. Meta shares tanked 19% after the company reported weak fourth-quarter guidance below analysts’ estimates. The Facebook parent’s revenue slipped 4% year over year to $27.7 billion in the third quarter while its profit plummeted 52% to $4.4 billion. Meta’s Reality Labs unit, which is responsible for developing the virtual reality and related augmented reality technology that underpins the yet-to-be built metaverse, has lost $9.4 billion so far in 2022. Revenue in that business unit dropped nearly 50% year over year to $285 million, which Meta’s chief financial officer, Dave Wehner, attributed to “lower Quest 2 sales.” “We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year,” Meta said in a statement. “Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run.” Brent Thill, an analyst at Jefferies, said during the earnings call that investors are likely feeling as if there are “too many experimental bets versus proven bets on the core” and asked why Meta believes the experimental bets like the metaverse will pay off. “I just think that there’s a difference between something being experimental and not knowing how good it’s going to end up being,” Zuckerberg said in response. “But I think a lot of the things that we’re working on across the family of apps, we’re quite confident that they’re going to work and be good,” he added, citing the company’s work improving its TikTok-like Reels short-video service, its content-recommendation algorithms, business messaging features and online advertising technology. Although Zuckerberg said he “can’t tell you right now how big they are going to scale to be,” each improvement is “kind of going in the right direction.” Zuckerberg said that “obviously, the metaverse is a longer-term set of efforts that we’re working on” and that he thinks “that that is going to end up working, too.” Sounding flabbergasted, Zuckerberg said “there are a lot of things going on right now in the business and in the world, and so it’s hard to have a simple ‘we’re going to do this one thing and that’s going to solve all the issues.’” Meta is facing a number of challenges like the poor economy, the lingering effects of Apple’s 2021 iOS privacy update that made it harder for Meta to target ads to users, and competition from players like TikTok, Zuckerberg said. Long-term investments into the metaverse are “going to provide greater returns over time,” he said. “I think we’re going to resolve each of these things over different periods of time, and I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded,” he said. Zuckerberg acknowledged that part of the reason his company is developing the metaverse is to ensure that it owns a platform in the future that won’t be adversely impacted by the decisions of its rivals, like Apple. But the bigger reason Zuckerberg is developing the metaverse is because technology companies can be more innovative when they build both the software and hardware that underpins a computing platform, he said. “A lot of this is just you can build new and innovative things by when you control more of the stack yourself,” Zuckerberg said. [Continue reading article here.]( [2 Unstoppable Stocks to Buy on the Dip in November]( KEY POINTS - The sell-off in the technology sector offers investors an opportunity to buy quality stocks at a discount. - Palo Alto Networks has 1,240 corporate customers spending at least $1 million per year with the company. - Zscaler experienced an acceleration in its revenue growth during fiscal 2022, despite the weakening economy. Cybersecurity is a critical area of focus for the corporate world, even as the economy slows down. Earnings season for the quarter that ended Sept. 30 is underway, and while it’s important to pay attention, one quarter won’t cement your returns over the long run. It’s best to take a much wider view of the stocks you’re looking to buy. So far this year, Palo Alto Networks (PANW 0.33%) and Zscaler (ZS -3.86%) have been delivering blockbuster results. By some metrics, growth in their respective businesses is even accelerating despite the slowing economy, and yet each stock is in the red for 2022. Both companies sell unique cybersecurity products, and that’s one expense their corporate customers have no intention of cutting — even in the event of a recession, according to a recent survey of leading chief information officers by investment bank Morgan Stanley. Both Palo Alto Networks and Zscaler will report their third-quarter earnings in the middle of November, but here’s why the results might simply be another piece in an exciting long-term story. Palo Alto Networks: An industry leader in multiple categories Few technology companies have found immunity against the broader decline in the Nasdaq-100 stock market index, which lost 31% of its value year to date. But Palo Alto stock is holding up well, declining by just 11% over the same period thanks to its strong operational performance during 2022. The company leads the cybersecurity industry in 11 different categories, each of which is a subset of its three core areas of specialty: cloud security, network security, and security operations. The cloud is a particularly lucrative opportunity, as more companies shift their operations online, which balloons the attack surface and calls for advanced, around-the-clock protection from attackers that could be anywhere in the world. Palo Alto’s industry-leading position, combined with heightened cyber risks, resulted in large organizations rushing to use the company’s products. At the close of fiscal 2022 (ended June 30), Palo Alto had 1,240 customers spending $1 million or more annually, which jumped 25% year over year. This helped the company generate $5.5 billion in revenue for the fiscal year, a 29% increase compared to fiscal 2021, and it marked a faster growth rate than both the prior two years. In other words, despite the numbers getting larger and the economy slowing down, Palo Alto’s business keeps accelerating. The company’s heavy investments in growth and innovation come at the sacrifice of profitability. But fiscal 2023 could reverse those fortunes, as it estimates it will flip its bottom line into positive territory for the year on the back of as much as $6.9 billion in revenue. And if that’s not enough, Palo Alto stock has the overwhelming support of Wall Street, with not a single analyst recommending selling. Whether investors choose to buy in before or after its upcoming earnings report, November is as good a time as any to take a long-term position. Zscaler: A pioneer in Zero Trust technology Zscaler solves some very important problems created by cloud computing technology, and it has become a cornerstone of many companies’ cybersecurity strategy. As large organizations migrate to the cloud, it enabled them to assemble workforces that can be located anywhere in the world. While that’s an advantage, it also presents significant challenges. Granting network access to employees working remotely poses obvious cybersecurity risks: Are the employees’ credentials secure? Can the organization be certain at all times that it’s them accessing the network? If an employee’s password or two-factor authentication method is compromised, how will the company know, and can it respond to the threat quickly? Zscaler developed Zero Trust to confront some of those difficult hurdles. As its name suggests, the technology assumes that all interactions with an organization’s digital assets are hostile. All employees, regardless of existing permissions, will have their location, device, and role analyzed by Zero Trust so that it can form context around the interaction, increasing the likelihood of identifying threats. But that’s not the best part. Zero Trust only connects the employee to the application they’re authorized to access, not the broader network, so in the event of a breach, the malicious actor can’t move laterally across the organization’s digital assets. Like Palo Alto Networks, Zscaler saw an acceleration in its business during fiscal 2022 (ended June 30). Zscaler’s revenue topped $1.09 billion, a 62% jump year over year, marking the fastest growth rate since it became a publicly traded company in 2018. Past performance doesn’t predict future results, but with another earnings report around the corner, a positive surprise isn’t out of the question. Zscaler has several tailwinds, but increased cloud adoption is arguably the biggest because it means demand for Zero Trust will only grow over time. With Zscaler stock down 50% in 2022, investors might do well to buy the dip and hold for the long term. [Click here to read full article.]( , 1919 Taylor Street STE F, Houston, TX 77007, United States You may [unsubscribe]( or [change your contact details]( at any time. Powered by:[GetResponse](