![]() Competition from others like ByteDance (TikTok) are shifting the competitive landscape. Many of the younger generation are not core Facebook users and while they may use Meta owned social networks like Instagram, other regions are already seeing growing numbers of young individuals who have never used any Meta sourced platform. A litany of controversies, which includes mis/disinformation, how the company moderates content/users, privacy (both related to its commercial activities and workings with government agencies), scandals (i.e., Cambridge Analytica scandal and more recently internal whistleblower Frances Haugen’s allegations the company puts profits above users’ safety), and the company’s size and position within the market as a potential monopoly.Meta is facing substantial pressures on several fronts which have contributed far more to the stock declines than a rebrand and focus on the metaverse. Even if there is some negative impact, the reaction to the metaverse play isn’t nearly as significant as Meta’s other problems. ![]() Given the relative proximity of Facebook’s Meta rebranding (announced October 28, 2021) to the change in stock price, one could argue for a cause and effect, but the metaverse play isn’t likely the reason for Meta’s stock declines. ![]() Meta’s recent rebranding to reflect its emphasis on the metaverse has led some to question if investors are already souring on the prospects of the metaverse or, alternatively, questioning the company’s ability to profit from this trend. Meta’s stock has taken a beating, dropping nearly 38% of its value at the close of February 2022, just two months removed from the start of the year (Jan 3, 2022)-Meta’s stock is down 44% from a peak in September 2021. Meta Platforms' Stock Down 20% YoY at Close of February 2022 ![]()
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