Facebook’s parent company, Meta, is heavily investing in virtual reality. The company, which has recently made a name for itself with the steps it has taken regarding the metaverse, makes the virtual world a part of our lives. However, this situation seems to cause disaster for Meta. However, analysts described Meta’s condition as a ‘train wreck’.
Meta hits four-year low
Meta recently reported a decline in its quarterly revenue. Then the company lost about a quarter of its market value on Thursday, a 24 percent drop. This fell to the lowest level in four years. Analysts described Meta’s situation as a ‘train wreck’ after the consecutive decline.
The declines are far from the fact that CEO Mark Zuckerberg changed the name to ‘Meta’ in 2021 to emphasize Facebook’s focus on the metaverse. When we look at the time of last autumn, it is possible to say that Facebook is on the rise. But now the situation shows the opposite.
The company’s market cap in September 2021 had a peak of more than $1 trillion. In addition, advertisers were flocking to Facebook and Instagram to reach billions of users. This increased profits. In general, it is possible to say that the technology industry has faced a major blow this year. But Meta’s stock plunge was down 67 percent compared to the previous one.
Meta’s market cap fell to $268 billion, from more than $1 trillion in September 2021, according to reports Thursday. The general reason for this decline is the metaverse, as well as the core Facebook business, with the economy slowing, with advertisers cutting spending as well.
Analyst Dan Ives made a statement about the decline in a report. “The results of Meta last night were an absolute train wreck appealing to widespread digital advertising fills as Zuckerberg and Co. made risky and heady bets on the metaverse.”
So, what do you think of Meta’s decline? Do you think Meta will be able to increase its market value? Do not forget to share your views with us in the comments section!
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