Today's video focuses on recent news about the metaverse from Microsoft (MSFT 1.65%) and Meta Platforms (META 2.98%), until recently known as Facebook. Here are some highlights from the video. 

  1. Investors should be cautious as the excitement over a metaverse continues to grow. Numerous companies have used the word "metaverse" to gain attention for the products they offer. In reality, a metaverse will not be available for several years. Investors can look at the products companies are building now to create a metaverse and determine if these products can provide near-term value to the company.
  2. A metaverse should be an open world, and unfortunately, this may not work well with Meta Platforms. A consumer currently needs to have a Facebook account and Facebook Oculus hardware to enjoy its original content, which may push some users to reject the idea of entering Facebook's metaverse. As the company develops its technology, it may also change the entry requirements.
  3. Microsoft has recently announced it will eventually give users the ability to use 3D animated characters on its video conferencing platform, Teams. Teams will also enable users to host interactive meetings, giving online sessions an in-person feel. The CEO of Microsoft has also teased plans to create a gaming metaverse.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Nov. 2, 2021. The video was published on Nov. 2, 2021.