For this 2023, the company created by mark zuckerberg It will continue to bet on the Metaverse world, however, first it will have to solve more earthly problems, with investors demanding to clean up the accounts, after its vertiginous fall on the stock market after changing its name in 2021 from Facebook a Goaland from which he still has not managed to recover.
You have to remember that before calling Goal, the company that controlled Instagram and WhatsApp, reached a historic rise in the stock market. However, the change had a strong negative impact, according to revelations from a former Facebook employee.
This same person leaked thousands of internal documents to The Wall Street Journal, where it was shown that the company prioritized profits instead of addressing issues such as online hate, violence and misinformation on its platforms.
In 2022 the problems continued for META
During 2022, the company mark zuckerberg it was the worst performer, according to the S&P 500 index. Results shown at the end of October revealed a 4 percent drop in revenue. Being its slowest growth in a decade, which is related to the loss of advertising.
The income in this area of Goal they have fallen very hard against competition from companies such as TikTok, Amazon, Microsoft and Apple. Added to them, inflation and the rise in interest rates, Meta has been forced to reduce the advertising budget.
Will Meta continue to invest in the metaverse?
Even with the low numbers and economic difficulties, Goal has continued to invest in its projects metaverseworrying investors involved in the process, as billions have been spent on virtual reality labs.
In October, the company revealed that losses from its virtual reality labs would increase significantly in 2023, reaching close to $10 billion by September 2022 alone.
During a call with investors at the time, Zuckerberg said he would continue to invest heavily in the project, despite their opposition, according to the report. Financial Times.
Fines in Europe for misuse of data
To this we must add that Goal is under increasing legal pressure. In early January, the Irish Data Protection Commission fined the company almost €400 million for breaches of the European Data Protection Regulation, in relation to its data protection services. Facebook and Instagram.
Meta has three months to pay the penalty. This is the most recent example of the company’s battle to continue using its users’ data for advertising purposes as usual.
Mark Zuckerberg will have a critical year
During this 2023, the company will celebrate its twentieth anniversary, since it was in 2003, when Zuckerberg designed “FaceMash” at Harvard University, the platform that a year later would be launched as the name of Facebook.
The company has said that, in 2023, capital expenditures could reach $39 billion, while it would seek to intensify its investments in virtual reality labs and the metaverse. His shares, however, fell 25 percent in just one day after the news broke in October.
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This is the BIG problem that Meta has to overcome in 2023