2022 hasn’t been a good year for Meta, as the Facebook company has come under fire for its huge metaverse investments. Unfortunately, all that money doesn’t appear to be paying off, as the company’s value has lost a shocking $700 billion.
Admittedly, Mark Zuckerberg did say that it’s a long process that will lose money but that’s not really helping matters. Basically, users that want a fully lived-in metaverse are going to have to wait a really long while from now.
Is Meta falling apart?
CBS News reports that the value of Meta has plunged by $700 billion, with many calling it a massive disaster. Last Thursday, Meta confirmed that they lost 24% of their shares, reportedly their lowest level in four years.
"It's a far cry from the company's position nearly a year ago, when CEO Mark Zuckerberg on October 28, 2021, announced with great fanfare that Facebook was changing its name to Meta Platforms to emphasize its focus on the "metaverse," claims a Wall Street analyst.
Not helping is how well Meta was doing in 2021, where the company’s market value reached $1 trillion last September. Sadly, Meta seems to be a former shell of what they used to be and the road to recovery is going to be a long one.
Will the metaverse be worth it?
Various companies thought that Meta was on to something when it placed all its bet on the metaverse, hence, investments. However, it’s clear that investors are losing patience and that won’t be stopping anytime soon, since money continues to talk.
"Meta's results last night was an absolute train wreck that speaks to pervasive digital advertising doldrums ahead for Zuckerberg & Co. as they make the risky and head-scratching bet on the metaverse," Wedbush analyst Dan Ives said.
It seems that time is running out for Mark Zuckerberg and Meta, as more investors question if this is truly the future. Expect things to get better or worse next year, with things looking like they’re leaning toward the latter.