Facebook burned 15 billion on Metaverse. No one knows what exactly

Facebook is pumping money into the Metaverse, but not telling anyone what it’s for. The company’s shares are going headlong.

Metaverse is a project that, on the one hand, raises concerns about what the future of the Internet will look like, and on the other – looking at what is now called Metvers – will cause an explosion of laughter and a nod of Škoda’s head. Because when a company that “sells virtual living spaces” has a market valuation of $1.2 billion and 38 daily users, it is known that something is definitely not right. Only a small group of users seem to be excited about Zuckerberg’s idea, which, combined with the company’s plans for Metaverse, may raise questions about whether the entire investment even has a chance of making a return.

Especially since it’s not even known what exactly is being done with the Metaverse

Since the beginning of the Metaverse project, i.e. the founding of Reality Labs, Facebook has invested $15 billion in its work. And that wouldn’t be out of the ordinary, since Mark already announced big expenses at the conference last year. However, spending large amounts of money is one thing, and telling shareholders what (and above all – why) is being done is a completely different matter. As it turns out, Meta does not allocate in its financial statements what exactly the company’s huge funds went to, and does not provide investors (or anyone else) with a view of the development of the project.

Of course, this raises many doubts. A lack of financial transparency is the last thing Facebook needs today. Remember that times are changing a bit and Facebook is not the same company it was a few years ago. Today, Facebook is losing popularity, for example, to TikTok, and it is also being attacked from all sides by lawsuits about how the social network empire it created affects the psyche of users. All this is sprinkled with information that platforms like Messenger or WhatsApp are spying on us at every step and can pass our private messages to other institutions.

When faced with such issues, shareholders are naturally very concerned that they have no insight into Metaverse’s development or even how the company’s money is being spent. At the same time – there is no Metaverse as such yet, and if I had to guess, it won’t be around for long, and if it does appear, there’s no guarantee of its success. It’s no wonder Facebook’s market capitalization is plummeting, from $380 billion today to $130 billion. If Mark doesn’t change quickly or convince investors, it may turn out that the money to complete the project may simply… not be enough.


Related posts

Leave a Comment