Meta Share Drop Cuts Facebook Value By $200 Billion, Largest Ever In History
Meta¡¯s Reality Labs Division which consists of the company¡¯s investments in the metaverse space and VR, disclosed its contributions for the very first time stating that it was operating at a loss of $3.3 billion for the fourth quarter.
Stocks of Meta (formerly Facebook) collapsed as much as 26 percent on Thursday morning, the biggest the company has ever seen.
Reuters
Also Read: Facebook Meta Is The Worst Company Of The Year, Says Yahoo Survey
This came right after Meta's user base dwindled last quarter for the first time in the company¡¯s history. The sudden drop has erased $200 billion from the company¡¯s market capitalisation.
As reported by Bloomberg, the drop also resulted in Meta CEO Mark Zuckerberg¡¯s personal wealth dropping by a whopping $24 billion, who had also acknowledged the fact that the company was experiencing tough competition for user time and attention specifically from TikTok.
Meta has never come across so many challenges at once. Apart from the cut-throat competition, it is also fighting against targeted advertising cutdown by Apple devices that according to estimates, could slash $10 billion from its revenue this year.
On the other hand, advertisers are implementing cutbacks that are trimming budgets due to rising costs and supply chain disruptions.
Meta¡¯s Reality Labs Division which consists of the company¡¯s investments in the metaverse space and VR disclosed its contributions for the very first time stating that it was operating at a loss of $3.3 billion for the fourth quarter.
During the company call, Zuckerberg was asked when would the world get to experience the metaverse, to which he revealed that some elements of the metaverse -- like digital avatars -- are already here.
Reuters
Also Read: Mark Zuckerberg Lost $24 Billion Overnight, As Meta's Stock Dipped 23 Percent
He also highlighted that metaverse would work best using a VR or AR headset, where people will still be able to access the digital environment via Meta¡¯s existing apps like Facebook and Instagram.
Facebook reported a total of 2.91 billion monthly active users in the fourth quarter. Its primary group of active users in North America -- which is also its most lucrative market -- saw a drop from 196 million to 195 million.
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