DailyPost 2225

The connect between the investor and the business has always been a financial one and will always remain so. The company should deliver to them Meta or no Meta. Returns of the company is what matters to the business world. The user is out for extracting an out of the world experience with any new tech transformation tool with the least amount of effort. Anything which does not fall in this business format normally will not succeed. The recent success of Tesla reconfirms the same story. A bootstrapped start up start-up has the liberty to make any number of misadventures. Public money is a public issue is a clear message to all entrepreneurs.

A tech headline screams; ”Investors punish Mark Zuckerberg as costly metaverse pitch falls flat.” It has gone to the extent that one Meta shareholder recently voiced his concerns finding the company’s investments ”super-sized and terrifying.” Wall Street is a barometer of any company’s health and the utility of their future tech growth, mainly basing on hard data. it seems to losing faith in this grandiose project and the impact it is having on the financial health of the company. Unfortunately, the company’s overall cost has been driven up by a fifth in the third quarter, because of this project.

The shares are down by 20% of late leading to wiping out of $67 billion off its market value. This was after the company had posted fourth straight decline in quarterly profit. It does not end here. Facebook said that its overall expenses could rise by 16% next year. While this overall expenses rise, operating losses are expected by the Reality Labs – the unit operating the metaverse project. The work will grow significantly, for whatever it means. People outside the core group others find the trajectory as confusing and confounding. The worse part is Meta’s inability to cut costs ”extremely disturbing.’

Investors feelings can be broadly summarized in the dilemma created by the company’ ”just too many experimental bets versus proven bets at the core.” The main promoter is betting for the bets, but the investors would like hear why? A fast reality check, would not be out of place. In the July-Sept quarter, the losses exponentially grew to $3.67 billion from $2.63 billion a year earlier while the revenue halved. Mark Zuckerberg has his dream in place, lead the world into the Metaverse. He said, ”I would be a mistake for us to not focus on any of these areas that will be fundamentally important to our future.”

Sanjay Sahay

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