Professional Services
Order outsourcing

Meta's Shares Plunge by 25%, Zuckerberg Asks Investors for Patience

The company's big bet on the metaverse led to skyrocketing costs and drops in revenues which resulted in its shares nosediving 25% in one day.

A day after Meta published its third-quarter financial report, reflecting a slight decrease in revenue and a significant drop in net income as well as increased expenses, the company suffered setbacks. On Thursday, the Facebook parent's shares plunged as much as 25% sliding below $100 a share which is the company's lowest point since 2015.

As reported by Bloomberg, during Wednesday's call with investors, Meta CEO Mark Zuckerberg asked them for patience and tried to justify the company's swelling investments by the need to fund its version of virtual reality, the metaverse, as well as AI technologies that fuel major changes in Meta's social networks.

However, apparently due to disappointing numbers as well as a lack of faith in Zuckerberg’s metaverse vision, Meta's market value has collapsed by a whopping $676 billion in 2022 which removed the social media giant from the ranks of the 20 largest US companies.

"Meta remains too aggressive with its investments in long-term initiatives despite a sharp deceleration in expected revenue growth," said an analyst at Bloomberg Intelligence Mandeep Singh. "The company’s opex and capex view for 2023 is surprising, given the lack of traction so far with its metaverse efforts."

Zuckerberg, meanwhile, said he is confident that the company's bets in areas like short-form video, business messaging, and the metaverse were the right moves that will eventually bring profit, however, he couldn't specify when the investments will pay off or how big the payoff would be.

"I think we’re going to resolve each of these things over different periods of time," Zuckerberg said. "And I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded."

You can learn more about Meta's current situation here. Also, don't forget to join our Reddit page and our Telegram channel, follow us on Instagram and Twitter, where we share breakdowns, the latest news, awesome artworks, and more.

Join discussion

Comments 0

    You might also like

    We need your consent

    We use cookies on this website to make your browsing experience better. By using the site you agree to our use of cookies.Learn more