{"id":15859,"date":"2022-02-22T11:39:05","date_gmt":"2022-02-22T11:39:05","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/22\/meta-is-down-500-billion-since-changing-its-name-from-facebook\/"},"modified":"2022-02-22T11:39:05","modified_gmt":"2022-02-22T11:39:05","slug":"meta-is-down-500-billion-since-changing-its-name-from-facebook","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/22\/meta-is-down-500-billion-since-changing-its-name-from-facebook\/","title":{"rendered":"Meta is down $500 billion since changing its name from Facebook"},"content":{"rendered":"

<\/a>\n<\/p>\n

\n

In context:<\/strong> Mark Zuckerberg has really gone all-in on the metaverse. So convinced is the CEO that virtual, shared worlds are the future of tech, he changed Facebook\u2019s corporate name to Meta last year. But what has happened since that rebranding? The company has seen $500 billion wiped off its market value. <\/p>\n

New York Mag<\/a> reports that Meta\u2019s half-a-trillion-dollar decline since the rebranding has resulted in a drop from its lofty position as the sixth-largest company in the world by market capitalization to 11th position, replaced by the likes of Nvidia and Tencent.<\/p>\n

A lot of Meta\u2019s problems don\u2019t stem from the new name but are a result of Apple\u2019s privacy changes introduced in iOS 14 that allow users to opt out of targeted ads and prevent apps from tracking cross-app behavior. Meta said the change would put a $10 billion dent in its ad revenue this year\u2014an announcement that wiped $232 billion off its market cap in a single day.<\/p>\n

Google is introducing similar privacy measures with its Privacy Sandbox for Android<\/a>, though its implementation isn\u2019t as extreme as Apple\u2019s, and it won\u2019t arrive for at least two years.<\/p>\n

Then there\u2019s Facebook. The social media platform had an unwelcome sight in its most recent earnings report: the fourth quarter saw its daily user numbers decline for the first time<\/a>, plunging its share price 20%. Moreover, the AR and VR division (Reality Labs), an important part of its metaverse plans, made a $10.2 billion loss in 2021.<\/p>\n

\"\"<\/picture><\/a><\/p>\n

Another problem for Meta is that while many companies are looking to jump onto the metaverse idea, most consumers are apathetic towards what some consider a VR version of Second Life. The metaverse, Web 3.0, and NFTs might excite firms looking to capitalize on them, but the buzzwords leave many people apathetic at best, hostile at worst\u2014a patent hinting at metaverse eye-tracking<\/a> ad tech certainly hasn\u2019t helped.<\/p>\n

Meta still has a market cap of $561 billion. It made $33.76 billion in revenue during Q4, up 20% year-on-year, and the overall number of daily active users across all its apps grew slightly, so it certainly isn\u2019t in trouble. But maybe the metaverse, at least Meta\u2019s interpretation of it, isn\u2019t going to be as revolutionary as Zuckerberg thinks.<\/p>\n<\/p><\/div>\n