Metaverse? More like a post-covid curse…

With the trajectory of most companies not going in a positive direction these days, Meta continued to ensure it had a place on the table this quarter as well.

 

Today’s topic is about American tech giants, billionaires losing billions, and a common economic uncertainty across the globe.

 

When meta released its numbers this quarter, people were disappointed but not surprised at least. For context, Meta is now the latest Big Tech company that recorded rough financial results and declining revenue, to say the least.

 

And when you really think about it, the way the company is headed towards more losses, it shouldn’t even be considered a part of Big Tech anymore at all.

 

Back in Sep 2021 when Meta stocks peaked, it was practically the only time we witnessed such a surge. Right now, the company lost about two-thirds of its value, and the numbers ahead don’t seem promising as well.

 

So what went wrong in the first place?

Every day, people leave Facebook for good. Most people in their 20s don’t even have a Facebook account. The ones that once had an account decided to deactivate or delete their accounts and promised to never come back.

 

While this was a natural progression, the theory is rather interesting here. Facebook has too many people. If they don’t stay on Facebook, they have Instagram to go to. Of course, there’s WhatsApp too. The bottom line is that they still exist in the meta ecosystem. 

 

The problem right now isn’t that people are leaving. The problem is Meta’s failure to share a promising future with its recent developments.

 

It’s a no-brainer right now that Meta is significantly spending on building a metaverse. The company has been building this ecosystem and devices for it for more than a year now. And the goal is to continue working on it the next year as well, DESPITE THE LOSSES!

 

The future…?

“Virtual reality is the future!”

 

Maybe.

 

In fact, maybe a lot of people throw money towards Meta stocks right now only because they believe in the same analogy.

 

While the future is uncertain, one thing’s for certain – during covid, companies recorded significant profits because of zero interest rates when everybody was inside trying to keep themselves occupied and entertained. With people out of their homes now, the only thing that can make a tech business sustainable right now is utility and use cases.

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