Hellooo. I’m pretty sure most of us here have heard of what happened to Facebook last week. I initially thought it was some sort of new release or development regarding the Metaverse, but when I started reading more about it, it’s definitely not. For the first time, Facebook is in decline. I wonder how this will affect the development of Metaverse or if it will have any impact at all. What do you guys think?
Well, FB is going big, betting on the metaverse. They’ve lost considerable amounts of money, but Zuckerberg says those loses are in line with expectations.
- 2019: Net loss of $4.5 billion on $501 million in revenue
- 2020: Net loss of $6.62 billion on $1.14 billion in revenue
- 2021: Net loss of $10.19 billion on $2.27 billion in revenue
Really astounding numbers. But revenue is growing, doubling it seems every year. But losses are growing ridiculously too.
Plus, outside of Reality Labs, which works on the metaverse project directly, FB is seeing ad revenue decline as well, which might be why it’s pushing the metaverse so heavily.
I think only time will tell when Meta takes the metaverse.
Wow, he’s doing really well to go from losses of 9X revenue to 4.5X revenue in 3 years. I have never understood the US principle that a tech stock that flows negative cash is sought after as an investment. In the old days, companies that flowed positive cash and paid dividends were thought to be a good investment. I have not bought stock for over 30 years and don’t intend to change that any time soon.
It’s all about whether the return on invested capital is attractive or not. And FB/Meta has been one of those transformational companies. Whether good or bad, investors find value.
Just saw the WeWork documentary and I feel like… it’s more about the narrative they paint of their future lol
Sometimes it’s all about he narrative and what you can make people believe.
Insert Theranos joke
Exactly. Same thing with Adam Neumann and his wife. Ridic.
They still left with some big money out the door. And the wife, she was a character.
Putting it mildly lol