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An open shareholder letter to Meta CEO Mark Zuckerberg calls the tech giant’s investment in Metaverse “super-massive and terrifying.”
Shareholders have urged the company to scale back its investment in the Metaverse and its related technology divisions amid significant share price declines over the past 18 months.
The open letter was published on October 24, instructed Zuckerberg and the board of directors. It was created by Brad Gerstner, CEO and founder of Altimeter Capital, a technology investment firm that owns approximately 0.11% stake in Meta. according to To hedge follow.
Gerstner said Meta’s foray into the Metaverse is important, but it shouldn’t be investing as much as it is now.
The company has announced an annual investment of $10 billion to $15 billion in Metaverse projects, including AR/VR technology and Horizon World, but says it “could take 10 years to see results.” he said.
An estimated $100 billion+ investment into an unknown future is gigantic and terrifying, even by Silicon Valley standards.
Instead, he urged the company to focus on artificial intelligence (AI) rather than the Metaverse, as it “has the potential to be more economically productive than the Internet itself.”
Most companies will struggle to monetize AI, but we believe Meta is very well positioned to leverage AI to make all existing products better, he said. Added.
Gestner’s comments come the same day as Bank of America Downgraded Part of Meta’s Valuation from ‘Buy’ to ‘Neutral’ Valuation Leaves Metaverse Investments ‘Lack of Progress’ and ‘New Competition from Apple’ Shares ‘Overhang’ Because it is likely.
Gerstner added that Meta’s stock has fallen 55% over the past 18 months, while the average of its “big tech peers” has fallen 19%. market. “
Related: Facebook is trying to destroy the Metaverse and Web3
Gerstner isn’t the only one who thinks the future of the metaverse is relatively “uncertain”.
On July 30th, Ethereum co-founder Vitalik Buterin said, The Metaverse will happen. Attempts by companies like Facebook become ‘duds’ Because “it’s too early to know what people actually want”.
Meta Platforms Inc stock price (meta) At the time of writing, it plunged 60.53% last year to $129.72. In the current bear market, it’s a much bigger drop than the likes of Apple, Amazon, and Google.
Meta plans to report its third quarter 2022 results on October 26.
