Meta has no choice but to spend billions of dollars on building out the metaverse if it wants to control its future, Goldman Sachs tech analyst Eric Sheridan argues. "Taking a step back from the recent stock performance (both year to date and in the after-market), we see platform/infrastructure investments by Meta (which started in mid-2020) as both a) continuing to build independence from a volatile range of outcomes from future mobile OS platform changes; and b) aligned with a strategic shift toward short-form video and from the social graph to the interest graph," Sheridan wrote in a note to clients on Thursday. Nevertheless, Wall Street continues to have a bone to pick with the digital world being created by Mark Zuckerberg dubbed the metaverse. Meta stock crashed 22% on Thursday as the Facebook and Instagram owner continued to spend aggressively to build out its metaverse. The build out contributed to a 1,600 basis point plunge in Meta's third quarter operating profit margins.