Meta back to 2016

Meta, the mother firm of Facebook, Instagram, WhatsApp, … got slammed at the stock market yesterday after the news of their loss of 4 % in revenue. 25 % of market value got evaporated, which brings them back to the value of Facebook in 2016. 75 Billion USD of market capitalisation was lost yesterday. A huge blow for Meta and Mark Zuckerberg. They did not only see their revenue drop with 4 %, but their costs also rose with 19 %. This is all due to the investments in the Metaverse, the so called future of the internet.

Meta vs Apple

And that’s not all, the other tech giant, Apple, changed the privacy settings for apps so that Facebook and Instagram get less information from their users, which makes the information of their users less valuable for Meta. At the same time, fees for Meta on the App Store of Apple got bigger. Which gives them another revenue blow. In the meantime Apple is now advertising themselves in the App Store. So, they took away market share from Meta.

The beginning of the end?

Is this the beginning of the end for Meta? I don’t think so, but their monopoly is gone. With Apple stealing market share, and TikTok growing bigger and bigger, Meta is no longer holding the market in their hands. The success of the MetaVerse will define their future. If the MetaVerse flops, it go fast downhill for Meta. Who would have thought that a few years ago?

Sincerely,

Pele23