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Is Talk of the Metaverse Getting Out of Hand?

By Jose Najarro – Nov 3, 2021 at 10:30AM

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It seems the metaverse is all companies want to talk about now.

Today's video focuses on recent news about the metaverse from Microsoft (MSFT 4.69%) and Meta Platforms (META 23.28%), 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.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Jose Najarro owns shares of Meta Platforms, Inc. and Microsoft. The Motley Fool owns shares of and recommends Meta Platforms, Inc. and Microsoft. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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