Metaverse made Facebook evaporate 11.5 million billion after only half a year

Facebook value continuously dropped after entering the Metaverse.

Mark Zuckerberg has really poured himself into the Metaverse virtual super universe. The Facebook CEO is convinced that the virtual world is the future of technology, and Mark himself initiated the change of the company’s name from Facebook to Meta last year.

But how have things been since Facebook rebranded? The results were quite negative as Meta’s market value was blown away by more than $500 billion.

The company’s market value plummeted, causing Facebook to be dropped from the ranking of companies with the largest market capitalization, falling from 6th to 11th and being overtaken by companies like Nvidia and Tencent. replace.

In fact, Meta’s problem was not with the new name change, but rather a result of Apple’s privacy changes following the introduction of iOS 14, allowing users to opt out of targeted ads. target and prevent apps from tracking cross-app behavior.

Meta said that this unexpected move by Apple caused advertising revenue to drop about $ 10 billion this year. Just with the above announcement, Facebook’s market capitalization was blown by $ 232 billion in just one day.

And yet, Google is also working on a similar security measure with the Privacy Sandbox for Android. Although these measures are not as strict as Apple’s and do not appear at this time.

Then another cause comes from Facebook itself. The latest statistics show that the company has a dismal quarter at the end of 2021. Specifically, the number of daily users is decreasing, thereby pulling Facebook’s stock price down by 20%.

In addition, the AR and VR (Reality Labs) division, an important part of the metaverse plan, is losing 10.2 billion USD in 2021.

Another problem for Meta is that while many companies are looking to jump on the metaverse idea, most consumers are indifferent to what some see as a VR version of Second Life. Metaverse, Web 3.0 and NFT may stimulate companies to find ways to exploit them, but the less common and complex concepts are strange to many people.

Meta still has a market cap of $561 billion. The company generated $33.76 billion in revenue in Q4/2021, up 20% year-over-year, with a slight increase in total daily active users across all apps. Therefore, the impact may not be too strong. But maybe the metaverse won’t be as revolutionary as Zuckerberg thinks.

Source: Techspot