Zuckerberg and his billion-worth metaverse – His investors don’t have peace of mind
What if Mark Zuckerberg was wrong? – This simple question makes Silicon Valley tremble, as the founder of Facebook is subscribed to success. Renamed Meta last year, the group decided, at the instigation of its CEO, to put the package on the metaverse. But a few months later, the results worry Investors. One of them decided to speak out publicly to question the boss’s choices. He even allows himself some advice so that “Meta finds his mojo”.
Mark Zuckerberg’s strategy openly criticized
It was therefore through an open letter to Mark that Brad broke the investors’ silence. As a reminder, Brad Gerstner is the CEO and founder of technology investment firm Altimeter Capital. His company holds 0.11% shares of the Meta company and he had something to say to mark zuckerberg – and to the Group’s Board of Directors.
In this long document posted online on October 24, the minority shareholder notably mentions its fears It front of colossal expenses of the society. He refers to investments in technologies for virtual and augmented reality, but also and above all those in the Horizon World metaverse and in 3D immersion.
The group announced 10 to 15 billion dollars per year. However, Brad Gerstner fears that this “take 10 years to see the first results”. This would ultimately represent “100 billion dollars potentially invested in an uncertain future”which seems to him “oversized and terrifying”.
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Then he reviews the course of the‘stock over the last few months and highlights the Wrong results. When other technology companies of the same ilk have lost an average of 19% over the last 18 months, Meta recorded 55% losses over the same period.
For the shareholder, this “reflects the loss of confidence in the company and not just poor market conditions”. Moreover, on the day of publication of this open letter, the Bank of America moved the company from“buyer” at ” neutral “. The reason given? Lack of progress and new competition in the sector. Not enough to reassure investors!
To go up the slope, Brad Gerstner will put on the table some lines of thought for the CEO of Meta. First, refocus investments around theartificial intelligence who has “the potential to generate more economic productivity than the Internet itself”. Especially since the company is, according to him, very well placed to “take advantage of this technology” to improve their existing products. Subsequently, he will even go so far as to roll out a multi-step plan to improve the company’s cash flow.
The leadership of mark zuckerberg so seems challenged even with its investors who even allow themselves the luxury of advising it publicly. However, for the sake of appeasement, the letter concludes with a positive message: “Meta has more reach, more relevance and more growth opportunities than almost any platform on the planet”. The results for the third quarter of 2022 are expected in the coming days and will not fail to be commented on by observers and by investors who will look for signs of recovery… or not. At the same time, the competition is advancing on the projects related to cryptos and web 3.
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