Why Meta Platforms stock jumped almost 27% in November

Shares of Meta Platforms (NASDAQ: META) jumped 26.8% in November, according to data provided by S&P Global Market Intelligence.In short, within a month the companytook steps to increase its profits, and the market appreciated it. In the end, the company's stock fell more than 75% from its highs because its metaverse ambitions drove earnings down in the first place. Facebook shares reached an all-time high in September 2021, less than two months before the announcement of the name change to Meta Platforms.

 

By changing the company name, management showedthat his priority is the development of a digital interactive world – metaverse. Over the past 12 months, Meta Platform's Reality Labs segment revenue – divisions of the metaverse – amounted to 2.3 billion dollars. But Reality Labs' operating losses amount to an astronomical $12.7 billion. And these huge losses from the metaverse coincide perfectly with the free fall of Meta Platforms shares.