META jumps back into the magic of the metaverse?

Several reports speculate about metas (META) an impending farewell to the metaverse might have been premature, according to the Financial Times. META has been in talks with Magic Leap, a well-funded start-up, to reach an agreement that would help Meta develop AR (augmented reality) items.

As part of the multi-year agreement, Magic Leap could handle the licensing and manufacturing for Meta. Magic Leap develops enterprise AR devices and manufactures components such as lenses and software.

Meta has also continued to invest heavily in Metaverse projects Layoff of around 20,000 employees. Zuckerberg has dubbed 2023 the “year of efficiency,” so investing in Magic Leap’s technology seems to fit into its efficiency plans. This could be especially true if Apple (AAPL) has announced plans to introduce its own AR headsetand competition between tech giants will intensify.

Is Meta a Good Buy?

META stock remains a strong buy, according to Wall Street analysts. Out of the “Top Analysts” rated by TipRanks, 31 have rated Meta as a Buy, while only 4 top analysts have given it a Hold. Just last week, META gained after Loop Capital analyst Rob Sanderson gave Meta a buy rating, noting that the share price has nearly doubled since the beginning of the year. It will be interesting to see if this new agreement, if it goes through, will push the stock even higher.