Why is Meta crashing?

Many people wonder about the fall of the Meta share on 3rd February 2022. There are some assumptions about possible reasons, with most of the assumptions based on Meta Group's corporate figures for the last quarter. Let's take a look at some of these assumptions.

Negative ROI - Project Metaverse

The big announced investment and conversion to the Metaverse is supposedly not really paying off yet? This project is quite negative, as the figures show. The costs are said to be almost three times as high as the revenues. Current. Consumers don't seem to like it that much. I see more and more negative reviews about Metaverse and there are only a few that also refer to the technical IT aspects. If that were the case, then Meta's shares should fall by another 50%. Why?

That's why:

In my opinion, Meta has overestimated itself with over-ambitious plans.

Building a parallel world is complicated, and thanks to technology, people have high expectations even in the real world. This should be far exceeded in virtual reality. Unfortunately, the meta-reality is still pretty bare, too expensive and full of screaming running around children in the social apps (age about 6 years).

Such things don't sell well and I wrote back in December that there is a danger of meta becoming infantile. And that is exactly what is happening at the moment.

Metaverse is currently more of an idea or prototype than a fancy virtual world as elegantly presented to the public. It is a construction site. Elementary things especially in navigation and user experience are completely missing. Many interesting things are only available in the form of separate apps and not for free. The average price is 30€ per game. Many things are not even built yet, like avatars or the promised crazy worlds. No one really knows how big it is, how it's all organized and all the fog is also caused by the chase for individual profit of the companies that are currently in it. Multiverse is a bad copy of a real world trying to sell real estate in a naked world with bad sound solutions. In fact, no one knows how this construction will evolve?

Huge investment will be needed to raise VR above the level of the real world, and very different brains and skills will have to be involved. Why should the success of the old last forever when we can have progress?

GDPR in Europe

There is no reason to leave the market if a company is based on a good corporate vision, values and mission.

Some assume that GDPR in Europe can have a negative impact on campaign sales in Europe. But for me, the negative impact of Facebook campaigns is certainly the rather unclear campaign processes themselves. It's just not transparent enough.

TikTok vs. Facebook

Honestly? I don't have a TikTok account and I know TikTok only a bit, but I think the main difference is the age of the audience. And Facebook is getting older, as are its users.

My Forecast

To stay at the forefront of social technology, Mark Zuckerberg needs to score with an innovation or a new product. The way I see it, many of the current ideas and stakeholders are not the right ones and on this path the result will for sure not be OASIS.

So the question is, which group will ultimately be able to really build OASIS? And is Meta able to play a part in this development? Or will Metaverse remain a game full of children of well-off parents?