Facebook-founder Mark Zuckerberg announced at the Connect 2021 conference that Facebook would no longer be called that. Instead, it will be called Meta in recognition of the company’s new North debut, i.e. the Metaverse.
“To reflect who we are and hope to build the future, I am proud to report that our company is now meta… our mission remains the same – it is still about bringing people together …but all of our products, including our apps, now share a new vision: to help bring the Metaverse to life. And now we have a name that reflects the breadth of what we do.” Zuckerberg wrote in the annual founder’s letter, which he shared when making the announcement.
Now, since Zuckerberg has said that Meta will focus on building technologies for the Metaverse, with companies in the tech world developing products for the Metaverse or developing their own Metaverse, the tech world continues to grow. happened. Clearly, the race has started. While the grass may look green on this side of the lawn, things don’t look as good on the other side.
New York Maggie reports Meta lost $500 billion of its market capitalization value since its value in August 2021, and nearly half of that value — about $240 billion — in a single day when the Facebook-founder made a fortune-changing announcement. Furthermore, the report noted that the impact of the decline was so bad that Meta, once the world’s sixth-largest company by market capitalization, dropped out of the top ten and was followed by Warren Buffett’s Berkshire Hathaway and Chinese giant Tencent. been substituted. ,
The report also points to other reasons why Facebook (now Meta) is suffering. According to the report, revelations by whistleblowers about the harmful effects of social media and changes to Apple and Google’s ad tracking policies that don’t allow people to track users online, companies including Facebook, have added valuable data to Facebook. Incredibly difficult to collect. It is a treasure trove for advertisers. Changes in Google’s model have reduced Facebook’s profits. The ad is facing stiff competition from what the company is facing from TikTok — something that Zuckerberg has already acknowledged in the company’s latest earnings call.
That doesn’t mean Zuckerberg isn’t rich or that the meta isn’t wildly profitable. None of this is true. Both Meta and Zuckerberg have such deep pockets that what might seem like a wild goose chase at the moment. And who knows, one day, we might all be living in Zuckerberg’s dystopian dream.
Mark Zuckerberg burns $500 billion by changing the name of Facebook to Meta, this post first appeared on BGR India.