The Selfie that costed $10 billion dollars

The once great Facebook (Meta) is now plunging, and the cause of their current predicament?

Facebook recently launched “Metaverse”, which was supposed to be the revolution of the century, but no one told Facebook that making a Metaverse would not be cheap!

They have burned more than $10 billion last year solely on their “Meta” project, and experts say it’s going to grow more this year. This begs the question as to what did Meta (Facebook) achieve? – A terribly animated selfie of Mark Zuckerberg?

The Meta stock has plunged from a high of $376.69 (as of sept 3 2021) to a whopping $162.93 (as of sept 1, 2022). The nearly 57% fall in stock price in just 1 year has been detrimental to the reputation of Facebook. CEO of New York-based Ritholtz wealth management - Josh Brown said, “I don’t think the Facebook stock can recover back to where it was, at least for a very long time”, showcasing the market sentiment held by financial institutions towards Facebook.

Despite its large platform Meta(Facebook) is unable to provide the world with a suitable metaverse solution and, with their fierce social media rivalry with companies like Tik-Tok and Snapchat is not helping their situation financially, as Tik-Tok is the fastest growing social media platform with a nearly 18% increase in its userbase as of 2021 threatening the likes of Facebook and Instagram.

Could Facebook also possibly end up like Netflix?