Zuckerberg, Meta Suffer Stock Wipeout
Mark Zuckerberg will spend a lot of money. On AI. And on the metaverse. And on other things which'll take years to generate material revenue for Meta. In the here and now, the company will grow the top-line 18% in the current quarter, slightly slower than Wall Street expected. Oh, and expenses are drifting up.
That was the overarching message from Meta's Q1 report and subsequent conference call. It was contrasted by the market with what investors heard last quarter.
Not that Meta didn't convey
I’d say of the metaverse, not only does it not exist yet, but no one meaningfully wants it to either. That’s the disconnect between this innovation initiative and investors. Why does Mark think he’s going to convince people they want to sit in headsets all day long when most people are trying to stop being on their phones so much?
I agree with your sentiment on the AI investment, it’s Mark’s obsession with the metaverse that keeps killing his company’s value. The metaverse is Mark Zuckerburg’s “white whale”.
Zuckerberg has a long way to go be among the GOATs. Rough sledding ahead on privacy and data protection, immunity from liability, news service cost, antitrust, etc. Hope he’s enjoyed the ride. I don’t think he realizes how easy he’s had dating back to the congressional protection codified in the late ’90s (Sec 230).
As the chart in the article shows, the Meta stock volatility after an earnings release has been bitcoin-like over the past couple of years