Tech

Not even Facebook investors believe in the Metaverse

It’s been a year since Mark Zuckerberg announced the name change of Facebook. The technology not only announced a simple rebrandingbut changed the company’s focus to focus on the metaverse. This all sounded great on paper and was very promising. Yet 12 months later, what investors have seen is a 60% drop in its shares. Hence, in recent weeks, news has not stopped coming out from investors who are highly critical of Mark Zuckerberg and his company.

The metaverse is a bottomless pit of disappointment.

nfts metaverse

When Zuckerberg announced the change in focus of his platform, the founder of the social network made a series of estimates that are not being met. In theory, the Facebook metaverse was going to be a space where people from all over the world would engage in social and economic relationships. Meta would charge commission for all those assets marketed in the metaverse, as well as by all the applications launched for their virtual reality glasses, just as they were doing until now.

However, those who have invested their money in Facebook do not seem to agree with Mark Zuckerberg’s vision. If we go to the numbers – which is what really interests them – the Menlo Park company has been rising steadily since 2020. bullish rally continued during 2021stopping just in October of last year. Following the announcement, Meta shares plummeted. Today, Meta shares are worth a third of what they were a year ago. The fall goes much further than that of other companies on the NASDAQ, so investor complaints have become commonplace.

Open letter to Mark Zuckerberg

avatar zuckerberg meta

Tired of this situation Brad GerstnerPresident and CEO of Altimeter Capitalhas presented a open letter explaining to Zuckerberg what he should do to reverse the situation he has placed Meta in.

According to Gerstner, Meta needs to regain the confidence of investors, but also of its employees. To do this, the investor recommends reducing personnel costs by 20%. In the letter, the author indicates that to do this would be to return to a template equal to the one Facebook had in 2021.

And it is that the expenses of Meta have skyrocketed in the last year, at the same time that the actions have gone down. The most important measure announced in the text is limit investments in metaverse technology. Gerstner would put a ceiling on these investments of 5 billion a year.

No one trusts the metaverse

metaverse

Gerstner himself is quite critical with the metaverse:

«An estimated investment of more than $100 billion in an unknown future is oversized and terrifying, even by Silicon Valley standards.

In the letter, Gerstner said that Altimeter Capital has no demands and simply wants to commit to the address of Meta. Meta, for its part, has not commented on the letter.

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