Meta stock is taking a dive! The decline began when the company announced its results and had a new drop in revenue and profits. The situation was also aggravated by the statement of Mark Zuckerberg who said that he will not give up on creating a metaverse.
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All of the above had a negative impact on the stock, which on Thursday morning "dipped" by almost 20%.
After Meta released its results, which were “lackluster” in terms of growth and engagement across apps — specifically Facebook and Instagram — its stock price plummeted. However, what really seemed to spook investors was during the conference call, when the CEO said they would continue to invest more money in virtual reality, despite the negative feedback they have received so far.
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Mr. Zuckerberg has said he believes the company’s future lies in augmented and virtual reality, with next-generation social networks involving people wearing headsets communicating in digital spaces . The company invests billions of dollars a year in developing hardware that “goes inside people’s heads” and software worlds they can live in . However, the public has largely mocked the company’s efforts .
Mr. Zuckerberg changed the company's name to "Meta" instead of Facebook, in an attempt to focus on the metaverse, but that doesn't currently exist and may not exist for years.
See also: In the battle between AI and the Metaverse, CEOs choose AI
The Metaverse is a term for the virtual world created by the convergence of the real and virtual worlds. It is a shared, permanent space where people can interact with each other and with objects and environments created by software.
Source of information: independent.co.uk
