You can’t seem to swing a digital cat these days without hitting a negative Facebook (NASDAQ: FB) piece; whether it’s a data privacy breach, knowingly harming mental health, or just Zucks’ on a surfboard.
And now its Big Tech counterpart, Apple, has the social network worried.
Should investors be worried too?
Yesterday’s panic-sell dip came after the company provided an update on how Apple’s privacy updates have impacted its business and will continue to do so in Q3.
This comes in the middle of an ongoing scandal wherein a Wall Street Journal report shed light on the fact that Facebook willingly ignores or fails to address numerous problems across the board. This has even led to the resignation of its Chief Technology Officer, Mike Schroepfer.
Don’t panic just yet though.
Facebook is already the largest social platform on the planet, it isn’t going to be overtaken any time soon, and it has survived numerous scandals. It has also already lined up Schroepfer’s replacement in the form of its current head of hardware, Andrew “Boz” Bosworth, which could be more significant than you think.
To move away from overreliance on advertising and avoid future issues such as the Apple rule changes, it is creating a ‘metaverse’. This is a virtual and augmented reality experience that could dwarf everything it has done so far.
In line with its metaverse plans, hardware looks set to take a more prominent role in the business’s growth. Its VR headset division, Oculus, and recent smart glasses partnership with Ray-Ban, will play into this. With Bosworth at the helm, these are no doubt its next steps in diversifying away from advertising.
Social media was stage one for Facebook. Now, it looks like we could see it entering a whole new universe of growth, and investors should be excited.
Learn more about growth investing and what stocks make great investments by starting your free trial with MyWallSt right now. Subscribe here to start generating long-term wealth.
Editor at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.