A year after the name change, Meta saw its market capitalization drop by more than $763 billion. Faced with this observation, Sam Bankman-Fried took a critical look at Mark Zuckerberg’s strategy.
Sam Bankman-Fried (SBF) gives his opinion on Meta’s strategy
A year later Facebook has rebranded itself as MetaSam Bankman-Fried (SBF), founder and CEO of FTX, tried to explain Mark Zuckerberg’s policy in a long Twitter thread:
— SBF (@SBF_FTX) October 29, 2022
Try to explain because the band took the turn of the metaverse. According to him, part of the explanation lies in the fact that Facebook has gotten so big that the social network really doesn’t have room for growth anymore. Furthermore, he notes that the number of active users per month started to stagnate after “two decades of continuous growth“.
Thus, the income of the group it could not mechanically increase more. They could also potentially decline as users move to other platforms and Facebook’s image among the general public deteriorates.
As a result, Sam Bankman-Fried doesn’t hesitate to describe Meta’s new workhorse as a distraction to try to breathe new life:
“But another way to help his reputation is just to make people ‘like him no less.’ And one way to do that is to use a distraction. “Hi everyone, look over there, it’s the metaverse!” People are no longer thinking about privacy, bullying, and poor stock performance.”
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Are the billions spent just smoke bombs?
In its analysis, SBF goes even further by qualifying the 10 billion investments per year”smoke bombs that do not produce much smoke“. Refers to the fact that this no longer convinces investors, now that the initial enthusiasm has passed :
22) Which makes no sense if all of this is a diversion.
It’s one thing to spend $10 billion a year on smoke bombs.
It’s another thing to spend $10 billion a year on smoke bombs that don’t produce much smoke.
Why throw good money after bad?
— SBF (@SBF_FTX) October 29, 2022
It must be said that Meta’s metaverse is struggling to find its audience. One year after this change of image, the results of the group are simply catastrophic, with a listing on the stock exchange devaluing even more than Bitcoin (BTC)deleting more than at the same time Capitalization of 763 billion dollars :
Half price of the shares
Sign of a lack of adoption, we recently noted the practices of Meta’s management, which forced the hand of its employees to go to Horizon World.
From 28 October 2021, Facebook name change date, Meta has taken several actions in the direction of its blockchain shift. Gradually non-fungible tokens (NFT) are appearing on the group’s social networks and several requests have also arrived for the name “Meta Pay”.
Now it remains to know whether these different bets will pay off in the long runor whether they will accentuate the company’s current difficulties.
👉 On the same topic – Burdened by his metaverse? Meta posts drop for the third quarter in a row
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