Author: David Howell
Have you been following the news about Facebook? If not, you might want to sit down for this one. A prominent investor criticizes the social networking company’s tactics.
Mark Zuckerberg has a rising number of haters and critics. Meta Platforms (META), the businessman’s empire of social networks, is, of course, the target of scathing criticism from the financial world, experts, and investors.
The market value of Meta has dropped by roughly $570 billion since January, with shares down 62.3%.
What Is the Big Short?
The company’s CEO who is also the owner of WhatsApp, Instagram, and Facebook envisioned the Metaverse as the company’s future. With the aid of virtual reality headgear and cutting-edge technology like augmented reality, we shall live a mirror life as avatars in the immersive environment known as the Metaverse.
Zuckerberg renamed his business from Facebook to Meta Platforms to allay any remaining concerns. He poured billions of dollars into Reality Labs, the unit inside Meta Platforms responsible for creating this Metaverse.
By June 30, approximately $16 billion had already been invested in his futuristic plan, with a dismal outcome. A $2.81 billion operating deficit was reported by Reality Labs for the second quarter. Losses were $5.8 billion during the first half of 2022.
Reality Labs lost $10.2 billion over the entire year 2021.
The metaverse, Horizon Worlds, has a picture quality that is more akin to old technology than new. Investors are beginning to grow impatient. The news has received unfavorable publicity.
The Metaverse is frequently cited as Zuckerberg’s greatest mistake. The billionaire, whose personal wealth has decreased by about $77.7 billion since January, is still pleading for time. However, the future of Meta is clear, according to famous investor Michael Burry.
Burry is well recognized for having staked money—and with good reason—on the subprime credit market’s impending collapse, which sparked the 2008 financial crisis. He is also among the few people to have foreseen the present market crash.
What Did Michael Burry Say About Facebook?
On October 15, Burry wrote on Twitter, “Seems Meta has a New Coke Problem.”
The investor, who also owns the hedge fund Scion Asset Management, seemed to be implying that Meta was a big blunder on Zuckerberg’s part and that he’ll likely make a sharp U-turn. In essence, Meta ought to go back to Facebook and what it excels at in social networking.
As of now, Zuckerberg doesn’t appear ready to give up on the metaverse. The business recently unveiled a new virtual reality headgear priced at $1,500. On October 25, the headset known as the Meta Quest Pro will be Launched.
Summary
In his recent post on Twitter, Michael Burry said that Facebook is in big trouble, and he believes that meta is one of the big mistakes on Zuckerberg’s part. Is Burry right? Only time will tell, but it’s worth keeping an eye on Facebook over the coming months.