A year ago, Mark Zuckerberg, in order to develop people’s trust in the world of virtual reality, had announced the name of Facebook being changed to Meta, behind which his intention of changing the toxic image of the company. Many people did not even know the meaning of Meta, still, because of the jump in the business of advertisements during the pandemic, the value of the social media network market reached around 90 lakh crore rupees. Therefore, investors showed interest in the new experiment.
But after a year, the situation seems to be different as a lot had been on stake for metaverse but it has still not been able to become popular among people. In the meanwhile, it is being reported that users and advertisers are getting away from Facebook. Following the new branding, the company’s share-value has dwindled by 60%. As per Bloomberg, by 2023, the company’s profit will reduce by 50%. After the first time when Facebook’s daily users had reduced, sale of Meta shares had begun in February.
Following a constant increase for 18 years in a row, in between October and December 2021, 10 lakh users of Facebook had reduced. Nevertheless, the company made a comeback after this and 3 lakh 90 crore users augmented. The new Facebook users are from the poor countries, and that is why, advertisers are not interested in them, and hence, along with users, advertisers have stepped back as well.
For the first time in the company’s history, its earnings are less in the second trimester of the year, and along with the market troubles, Meta is dealing with regulatory bodies. USA’s Federal Trade Commission has filed a case against Meta for monopoly. Company’s Metaverse Division-Reality Labs have already faced a loss of more than 2 lakh crore rupees.
According to data-company IDC, Meta has sold 1 crore 70 lakh quest-VR headsets, which have been sold in lower prices than their value, and work is being done on the modern gadgets of Quest, but still, it is not certain as to when Metaverse will move forward. Till now, quest is being used for gaming, and quest pro’s aims are related to business activities.
And as far as Zuckerberg’s prediction of headsets becoming the next personal computers is concerned, Meta will be benefited for emerging first.