The market value of the Meta group, which has Facebook, Instagram and WhatsApp, was divided by more than three in one year. In particular, in question, the abyssal development costs of the metarers which confuse the markets.
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Twenty -one billion dollars (21 billion euros)! It is the trifle that Meta, the Mark Zuckerberg firm, swallowed up in two years, to create the Metavers, a three -dimensional virtual world which, according to him, would be the new border of humanity. In the third quarter of 2022 alone, the adventure of “Reality Labs” cost a record of 3.6 billion dollars.
Wall Street is appreciated less and less these expenses which no one really knows if they will one day report. The Meta Action collapsed by almost 20 % in exchanges outside the session on the New York Stock Exchange, Wednesday, October 26, after the announcement of the quarterly results of the company. Since September 2021, the value of Meta, which then amounted to more than $ 1,000 billion, has been divided by three.
The forced march choices of Mark Zuckerberg, whose fortune will have gone from 125 billion to $ 40 billion if the stock market fall on Friday, are drying up the formidable liquidity machine that was Facebook before D ‘Be renamed Meta. The available cash flow, which reached 12.4 billion dollars in the last quarter of 2021, dropped since a metronome – of $ 4 billion per quarter – and simply disappeared this summer!
This major choice to explore the metavers was taken while the company, which lives exclusively from advertising, accumulates difficulties in its traditional fields. Admittedly, as Mark Zuckerberg noted at a conference call, the number of daily Facebook users has never been so high – nearly 2 billion, and even 3.71 billion if we extend to everything The Meta group which also counts in particular WhatsApp and Instagram. But the group’s turnover (27.2 billion dollars) fell 4 % compared to the previous year for the second consecutive half while the quarterly net profit is divided by two (4.4 billions of dollars), down 52 %. 2>
very painful path
The firm undergoes the strength of the dollar for its foreign incomes, the slowdown in the advertising market while the recession promises to be on the planet, the confidentiality constraints on the advertising imposed by Apple on its iPhone as well as competition from Chinese Tiktok, whose videos delight young generations, much more in any case than Meta’s “real”. Instagram users spend ten times less time looking at them than Tiktok fans (17.6 million hours per day against almost 200 million on the Chinese application).
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