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The news has not been saying anything good about Meta in recent times. There has been news of staff taking their customers on account, and there have also been talks of their stock price folding and Meta having to lay off so many of their workers, the business model was also not an outstanding one in the first place, and Metaverse exploded in their face, It has all been bad news from start to finish in addition to losing 52% of their net income in the first three months.
The people who invested in Meta are not particularly happy people right now with all the recent development. Just last year the value of Meta was 1 trillion today the company is less than worth less than 300 billion. The value of meta has been devalued to its 2016 levels. Its performance is the lowest among the S&P 500 stock.
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Zuckerberg had always had eyes for the hardware market even after failing in his adventure to have a Facebook he still got sold to the Virtual Reality dream through Oculus and bought the company for $2 billion.
He went all in this project changing the name of his company from Facebook to Meta and spending 10 billion every year to research making his virtual reality dream a real reality. Many people in the company thought it was not such a good idea but nobody did anything to try to stop him.
While it is possible that Zuckerberg may be seeing into the future it is also possible that it may not be a future that is very close. Nobody is really sure when but it appears virtual reality will eventually take up the tech world because its use case is almost limitless.
The issue has been how ready is the world for this technology. Without answering that question Mark has been pouring all his attention and resources into this project.
So far the company has been able to sell over 10 million virtual reality headsets. The issue is that the first Oculus product (Horizon worlds) they have been trying to sell has been shit. At least that’s what the reviews looked like with avatars disappearing and going into nonexistent spaces it was a flop.
Palmer Lucky the creator of Oculus has chipped in saying that the product was a poor product that isn’t fun. To make matters worse the vice president of Horizons world dumped the company. Also, there is VR chat that has been doing well or at least people like it enough to use it.
Another key issue that led to their downfall was when Sherly Stenberg from google used user data to target customers for Ads. This was all going well until the iPhone had the option to turn that off and it cost Facebook billions of dollars.
Meta has not been very effective at improving what they have they find it more effective to simply steal from other tech companies. Like adding reels that were originally a Tik Tok thing to Instagram.
Mark didn’t have a person to bounce ideas off of or to oppose some of his ideas when COO Sheryl Sandberg chose to leave the company. Since then Meta has had to let go of about 11.000 workers and has lost 70% of its value.
When speaking with investors he explained that he thought the value of the company would continue to rise after the COVID rise and this was what facilitated his ideas to invest in other technology outside of Meta.
In addition to all this, some investigations are taking place that is not allowing Meta to acquire companies the way it did in the past, Tik Tok is winning them in every demographic, and a study is ongoing on the harmful effects of Meta.
These are some of the reasons everyone has been named for their downfall. But I would like to know what you think. Do you think it's enough to pull down this Tech giant for good? Are you still bullish on Meta stock? Would you like to book me for my illustrations?
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Posted Using LeoFinance Beta