Mark Zuckerberg burned $500 billion renaming Facebook to Meta | News
Facebook founder Mark Zuckerberg at the Connect 2021 conference announced that Facebook would no longer be called that. Instead, it would be called Meta in recognition of the company’s new northern start, i.e. the Metaverse.
“To reflect who we are and the future we hope to build, I’m proud to share that our company is now Meta…Our mission remains the same – it’s 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 during the announcement.
Now, ever since Zuckerberg said Meta would focus on building technology for the Metaverse, there’s been an increased buzz in the tech world with companies from all industries developing products for the Metaverse or developing their own. metaverse. Clearly, the race is on. While the grass may look all green on this side of the lawn, things on the other side aren’t quite as pretty.
New York Mag reports that Meta has lost $500 billion of its market capitalization value since its value in August 2021 and that about half of that value – around $240 billion – was lost in a single day when the founder of Facebook made the announcement that changed fate. Additionally, the report says the impact of the fall was so bad that Meta, which was once the sixth largest company in the world by market capitalization, dropped out of the top ten to be replaced by Warren Buffett’s Berkshire Hathaway. and the Chinese giant Tencent. .
The report also highlights other reasons why Facebook (now Meta) is losing money. According to the report, disclosures about the harmful effects of social media by whistleblowers and changes to Apple and Google’s ad tracking policies that allow people to opt out of allowing companies, including Facebook, to track users online have made it incredibly difficult for Facebook to collect valuable data that has made it a treasure trove for advertisers. Google’s change in model has made Facebook less profitable. Add to that the fierce competition the company faces from TikTok — something Zuckerberg has already acknowledged in the company’s latest earnings call.
That’s not to say that Zuckerberg isn’t rich or that Meta isn’t hugely profitable. None of this is true. Both Meta and Zuckerberg have pockets deep enough to pursue what might seem like a wild goose chase at the moment. And who knows, one day, one day, we might all live in Zuckerberg’s dystopian dream.
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