Meta Platforms Inc (NASDAQ: META) ended up on Friday after revealing plans of significantly trimming the price of its VR headsets.
The tech behemoth said its Quest 2 (256 GB) will now cost $70 less than before. Meta lowered the price of its latest Quest Pro as well to $999.99 – set to go live from March 15th.
Speaking with CNBC, Shelby McFaddin of Motley Fool Asset Management said cutting prices was a move in the right direction.
Slash on headsets price is a demonstration that they’re pivoting to being more diligent on capital and operational expenditure. It reinsures investors that management cares about what’ll be accretive to the business.
In February, Meta Platforms was reported considering more layoffs (read more) after cutting 13% of its workforce already in November. Versus the start of the year, Meta stock is up nearly 50% at writing.
Last year, the Nasdaq-listed firm attributed a whopping $13.7 billion of loss to Reality Labs – its metaverse focused business.
Nonetheless, McFaddin recommends buying Meta stock on the strength of “Reels” and the fact that this company is making cash flow a priority again. She noted:
They’ve successfully gone ahead and scaled Reels. They can now focus on monetisation efficiency in that product line, pulling profitability levers. They’re paying attention to what’ll be most valuable to shareholders.
Her bullish view is in line with Barclays that also dubbed Meta stock a “top pick” on Friday for investors interested in playing the rapidly developing momentum in artificial intelligence.
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