Focus video products meta stock plunges11/14/2023 "Meta has drifted into the land of excess - too many people, too many ideas, too little urgency," he wrote, urging the company to reduce staffing levels and cut costs. "Lots of people have maybe tried a game or entertainment, but it's not leading to massive sales."īrad Gerstner, the CEO of Meta shareholder Altimeter Capital, penned an open letter to CEO Mark Zuckerberg earlier this week urging the company to forget about their metaverse experiment, and refocus on their core business. "The adoption has not been huge," he told CBC News in a recent interview. Richard Lachman, an associate professor at Toronto Metropolitan University, says the company has pushed aggressively into things like expensive virtual reality headsets because they need a "killer app" to drive people into their version of the metaverse WATCH | What is the Metaverse and why is Facebook jumping into it? rebranded itself as Meta to showcase its belief that its future lies in the metaverse, a virtual, mixed and augmented reality universe that exists entirely online. It was roughly this time a year ago that the company, then known as Facebook Inc. The company was once an advertising colossus, but in recent months financial results show upstart rivals like video-sharing website TikTok are monopolizing an increasing number of the eyeballs that once belonged to Facebook or its other service, Instagram. As recently as February they were worth more than $300 apiece, enough to make the company one of only a handful in the world with a $1 trillion valuation. Meta shares were changing hands at just above $100 a share on Thursday morning, a level they haven't seen since 2016. That's two straight quarters of declining revenue and the company is forecasting the same to happen in the current one, which was enough to send investors running for the exits. Meta reported Wednesday that it took in $27 billion US in revenue last quarter, down from $29 billion previously. Spotify has been beset by a row over COVID-19 vaccination misinformation and also released disappointing results.Shares in the company formerly known as Facebook lost more than 20 per cent of their value on Thursday morning, after the social media company posted quarterly results that showed its core business is slowing even as it's spending billions of dollars trying to become a leader in the metaverse. Other social media stocks were also hit hard on Thursday, including Twitter (TWTR.N), Pinterest (PINS.N) and Spotify (SPOT.N). In the past week purchases of large-cap tech have skyrocketed while speculative assets have seen very little demand. Investors seem to be becoming highly selective after the sector's record-breaking run in recent months.Īccording to research firm Vanda, purchases from retail investors in late 2020 and early 2021 were focused on expensive tech, EVs and so-called "meme" stocks. The disappointment over Meta's earnings and the subsequent stock fall invoked memories of the bursting tech bubble in 2000. Meta reported a decline in daily active users from the previous quarter for the first time as competition with rivals like TikTok, the video sharing platform owned by China's ByteDance, heats up. 3, 2020, while Microsoft lost $177 billion on March 16 in the same year. With Big Tech firms like Apple and Microsoft ballooning in valuations in the past few years, they have also become more susceptible to investor whiplash, often resulting in losses worth tens of billions of dollars in a single day of trade.Īpple shed nearly $180 billion on Sep. Short sellers in Meta were poised to increase their potential 2022 gains to more than $2 billion with Thursday's plunge, according to S3 Partners. The stock's drop was in addition a boon for investors betting on a decline in the company's shares. He called the trading declines "an overreaction." It was the guidance that spooked people," Jeffress said. "The results, taken in their entirety, were okay.
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