While the word “Meta” is reaching new heights with each passing day, it’s interesting to know that stepping into a Meta-world doesn’t guarantee you are a jack of all trades. According to the recent news, there is a risky phase, which proved that Meta could go into a big downfall.
The buzzword “Metaverse”
It refers to a virtual world built of AR, VR, and blockchain to form a sort of alternate universe. The Metaverse was predicted long ago by author Neal Stephenson in the sci-fi novel ‘Snow Crash’ 1992, bringing up the world with no physical place in a dystopian surrounding.
Since then, countless books, movies and TV series have speculated on what sort of virtual world will come along, but the actual framing of 3D virtual-scene is a recent success to the creators and businessmen who aimed to advance their enterprise’s core value. We see Nike with digital RTFKT sneakers, Microsoft acquiring Activision Blizzard, or the most intriguing of all, the big blue app — Facebook — changing into Meta. These remarkable transformations gave them a rise in profit and helped the customers look at the digital side within the virtualized environment.
Importance of this virtual setting
The Metaverse is a virtual 3D world where you can do anything that seems impossible in reality. Under such an environment, you have avatars, the user’s replicas playing their part within that world.
The problem is people’s possible addiction to the Meta world. It can give many a sake of escapism and can thus be used negatively in damaging someone’s reputation. The main challenge in the Metaverse is also the data protection system.
And while these concerns got a perfect resolution, we recently saw another massive problematic situation getting in Meta’s way.
A historic drop for Meta in the stock market?
While Meta was undergoing a smooth transition within a profitable format, it recently went through turmoil witnessing a significant collapse where its stock plunged into an enormous market-loss looping off more than 215 billion of its global value.
Wall Street confirms that the Facebook parent company Meta was advancing in making Meta Platform Inc. but fell into a severe quarterly drop of 25.6% because of the weak revenue response. Also, the company’s capital market got a strong hit of 200 billion.
“Meta is sacrificing its core business model for its fascination with the metaverse,” said an analyst in the research firm GlobalData, Rachel Jones.
This plummet was the most compelling drop in the past 18 years due to factors that didn’t play well with the manufacturing of Meta into an immersive iteration of the internet.
- The Metaverse project is initially living with the investments that eat away more of its value than generate profit. The AR, VR units and reality labs housing the Oculus headset were meant to help the anchor push in Metaverse showed a profound revenue loss of $3.3 billion.
- The company is experiencing ‘headwinds,’ affecting the advertising budget to a great extent due to inflation and supply chain disruptions.
- Recent big-hit in privacy measures from Apple made it harder for the business to measure the effectiveness of ads on Facebook and Instagram. This has thwarted Facebook’s operating progression because, under the privacy measure, developers were required to request permission in gathering data and tracking them through their apps and websites. Due to the change, the user’s info got disclosure.
- The number of active users declined to 1.929 billion, defining a massive loss. At the same time, users are spending a reasonable amount of time watching Reels, yielding lower revenue.
Overall, the challenges Meta is currently undergoing could set the tone for what’s to come in the company’s future. What remains is to wait and see the outcomes of this historic market drop. The Metaverse has the potential of completely changing how our whole society operates, so it’s important to keep an eye on its development.
For more information about the impact next-generation technology has on our lives, follow our Medium blog. If you’re more of a hands-on type of person, start your journey as a trader today with IXFI, Your Friendly Crypto Exchange.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
