Meta Is Blowing Through Its Free Cash Flow, Will The Metaverse Bet Pay Off?

Nov. 01, 2022 4:04 PM ETMeta Platforms, Inc. (META)AAPL93 Comments
Frank Holmes profile picture
Frank Holmes


  • Will Mark Zuckerberg’s Meta Platforms metaverse project follow the same path as General Magic and Argo AI, or will it go in the direction of the iPhone?
  • Last week, Meta reported free cash flow of only $316 million in the third quarter, down significantly from $12.7 billion at the end of 2021.
  • There are signs that spending in the metaverse is stalling substantially.
  • It may be instructive to remember the last time a tech giant made a massive, ill-advised bet on a technology outside of its core discipline: AWS.

Group of coworkers testing VR simulator in the office

hobo_018/E+ via Getty Images

In 1990, a new tech start-up was spun out of Apple Inc. (AAPL) to invent the future.

General Magic, as it was called, was a veritable dream factory.

Over the course of its 12-year existence, its founders-former

Meta Platform's Free Cash flow (<a href='' title='First Commonwealth Financial Corporation'>FCF</a>) Now Under $1 Billion

U.S. Global Investors

Meta Platform's Market Cap Plummets Below $300 Billion

U.S. Global Investors

AWS Operating Income as a Percent of Total Amazon Operating Income

U.S. Global Investors

This article was written by

Frank Holmes profile picture
Frank Holmes is a Canadian-American investor, venture capitalist and philanthropist. He is CEO and chief investment officer of U.S. Global Investors, a publicly traded investment company based in San Antonio, TX, that oversees more than $4 billion in assets (Nasdaq: GROW). He is known for his expertise in gold and precious metals and launching unique investment products. Holmes also serves as executive chairman of HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company (TSX.V: HIVE).

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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