‘Zuckerberg presents a vision of what the future could hold rather than what can be delivered now’, analyst zeroes in on the failures of pricey Metaverse bets | IT World Canada News

Investor morale low in Meta after disastrous Q3 Earnings Results And in the last week of October, the company’s shares declined. Investors are blaming risky and beloved investments in the metaverse, although Meta’s chief government officer (CEO), Mark Zuckerberg, clings to his imagination and presentation.

Brian Jackson, analysis consultant for IT analysis agency Info-Tech, says this VR and immersive social world of Zuckerberg to show an area of ​​interest that has existed for more than twenty years in one thing that most people want to get excited about. Requires considerable funding. And Meta’s head of product, Austin Chang, defined that the corporate sought to enhance the current VR-only model horizon world By making it accessible on PC and Smartphone. For Chang, this growth will “open up opportunities for the metaverse to more people,” while creating additional revenue-generating options.

But the traders are not satisfied. Following Meta’s third-quarter earnings call, shares of the corporate fell 20 percent and were buying and selling at US$100.55, the bottom since February 2016.

After that the fear increased The firm predicts that Metaverse’s Reality Labs bills will reach US$101 billion in 2023, regardless of its massive losses in the last quarter.

Jackson defined that Metaverse’s shares are in decline for 2 reasons: “Metaverse Investments has not yet built a profitable business,” he said. “In a technology demo by CEO Mark Zuckerberg, we are presented with a vision of what can be in the future, not what can be delivered now. Even featured on stage in Meta Connect The avatar legs were done with motion capture technology, not Horizon Worlds. So there’s no compelling reason for consumers or businesses to buy an Oculus headset or invest in building on that platform.”

Some experts have advised that the Metaverse would follow a trajectory similar to that of Facebook, which became worthwhile after years of losses. Still, Jackson argued that short-term losses are more important to the metaverse. “have Facebook No longer a startup that venture capitalists see as the payday of the future. It is a publicly traded business consisting of shareholders.”

From any point of view, Zuckerberg is not succumbing to the desperation of traders. He owns only 13 percent pecuniary interest, but he has More votes linked to his shares Comparing all the different traders.

“they [investors] The noise could continue and pressure Zuckerberg to change course. He has to test his resolve to stay the course on the metaverse, but ultimately he remains in control,” Jackson said.

Source link

Share your love

Leave a Reply

Your email address will not be published. Required fields are marked *