Meta has lost $500 billion since it changed its name from Facebook

In context: Mark Zuckerberg has actually completely moved on to the metaverse. The CEO is so convinced that virtual and shared worlds are the future of technology that he changed the name from Facebook to Meta last year. But what has happened since this rebranding? The company has wiped out $500 billion from its market value.

New York Mag reports that Meta’s half-trillion-dollar decline since the rebrand has seen it as the world’s sixth-largest company by market capitalization to be replaced by Nvidia and Tencent in 11th place. ,

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Many of Meta’s issues stem not from the new name, but from Apple’s 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 cut its advertising revenue by $10 billion this year, an announcement that wiped $232 billion from its market capitalization in a single day.

Google is introducing similar privacy measures with its Privacy Sandbox for Android, though its implementation isn’t as extreme as that of Apple’s, and won’t arrive for at least two years.

Then there’s Facebook. The social media platform had an unwelcome sight in its latest earnings report: The fourth quarter saw its first ever decline in the number of daily users, with its share price down 20%. Additionally, the AR and VR (Reality Labs) division, which is a significant part of its Metaverse plans, reported a loss of $10.2 billion in 2021.

Meta has lost $500 billion since it changed its name from Facebook

Another issue for Meta is that, while many companies are looking to jump into the idea of ​​the Metaverse, most consumers are apathetic to what some see as a VR version of Second Life. The Metaverse, Web 3.0 and NFTs might excite companies looking to capitalize on them, but the buzzwords are leaving many people apathetic at best, hostile at worst – a patent hinting at the eye-tracking advertising technology of the metaverse certainly didn’t help.

Meta still has a market cap of $561 billion. It posted revenue of $33.76 billion in the fourth quarter, up 20% year-over-year, and the total number of daily active users across all of its apps was up slightly, he is therefore certainly not in difficulty. But maybe the Metaverse, at least its interpretation by Meta, won’t be as revolutionary as Zuckerberg thinks.

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