Meta Shareholders Call on Mark Zuckerberg to Stop Burning Money in the Metaverse

mark zuckerberg wants to Goal sets the pace for the metaverse and is doing so by pouring billions of dollars into its development. A position that is setting off alarms within the parent company of Facebook, Instagram and WhatsApp, and that investors do not like either. In fact, a long-standing shareholder firm has published an open letter in which, among other things, ask that those of Menlo Park cut your investment in Reality Labs and projects linked to life in virtuality.

the missive was published by Brad Gerstner, CEO of Altimeter Capital Management. In it, the executive assures that Meta must rebuild the confidence of its investors, employees and the technological community, to recover its mojo. “In short, Meta needs to get in shape and focus,” she says.

The company in question claims to have supported the Meta projects despite public skepticism. However, he considers that the increase in expenses, plus the fall in the value of his share, generates distrust for the future. For this, he proposes that firm measures be taken to reverse the situation; and the metaverse is in the spotlight.

Specifically, Gerstner recommends “a three-step plan that will double free cash flow to $40 billion a year.” What does it consist of? In reducing personnel costs by at least 20%; cut investment in capital goods by at least $5 billion; and limit investments in the metaverse and other Reality Labs projects to no more than $5 billion annually.

The shareholder assures that Meta should establish more discreet objectives when talking about the metaverse. He even mentions the possibility of increasing spending over time, “as the return on investment becomes more tangible.”

Meta must cut back on his spending in the metaverse to regain his mojoshareholders say

Altimeter Capital Management is another demonstration that the shareholders of Meta they are not satisfied with the decisions of Mark Zuckerberg, especially when it comes to the metaverse. Let’s not forget that Californians have marked that their plan for life in virtuality is long-term, and that they expect to start seeing the first results in about 10 years.

However, not all investors are so patient. Even more so when you look at the amount of money Meta has lost with Reality Labs in recent times.. As we told you last April, the division dedicated to virtual reality accumulates losses of more than 20,000 million dollars since 2020.

To this must be added that Horizon Worlds, your gateway to the metaverse, is not giving the expected results. It was recently learned that the company recdrastically cut its projection of users for the end of the year, but even in this way it is not fulfilling the proposed objectives. Also, the retention rate of your VR hardware wouldn’t be great either. As he reported The Wall Street JournalMore than half of Meta Quest helmets have gone out of use just six months after they were purchased.

Will there be gestures or responses from Zuckerberg to shareholders worried about spending in the metaverse? For now, it is difficult to know; although everything suggests that the CEO will continue with his plan without accepting concessions.

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Meta Shareholders Call on Mark Zuckerberg to Stop Burning Money in the Metaverse