Meta, parent- Facebook, faces historic drop,overall value falls by $230 billion dollars

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Meta has been transferring resources and hiring developers to focus on the metaverse since taking on its new name last fall.

Wall Street is concerned because Meta is putting a lot of virtual eggs — and billions of dollars — into the metaverse basket. The firm formerly known as Facebook revealed a rare earnings decline on Thursday, owing to a significant increase in spending, unstable ad revenue growth, competition from TikTok, and fewer daily US users on its flagship platform.

Simultaneously, it put more than $10 billion (approximately Rs. 7,46,900 core) into CEO Mark Zuckerberg’s ambitious goal to turn Meta. into virtual reality — or, to put it another way, “metaverse-based” — corporation. In afternoon trading on Thursday, Meta’s shares plunged more than 26% to $237.76 (approximately Rs. 17,800), slashing the company’s whole worth, or market capitalization, by more than $230 billion (about Rs. 17,18,300 crore). That’s the biggest one-day drop in a company’s history.

“In order to pursue its passion with the metaverse, Meta is abandoning its primary business model.” “Rachel Jones, a research analyst at GlobalData, agreed. “It’s not a bad idea to bet big on the metaverse – the technology is set to be massive and bring a plethora of chances — but it’ll take at least another decade to get rolling.” While IT businesses are used to placing large bets on futuristic-sounding ideas that occasionally become reality — and come with a large payoff — Wall Street is wary of risk. There’s also the unpleasant issue that Facebook’s existing platform continues to struggle with destructive real-world impacts.

Since changing its name last fall, Meta has been transferring resources and attracting engineers who can help Zuckerberg accomplish his goal, including from competitors like Apple and Google. Consider the metaverse to be the internet brought to life, or at the very least portrayed in three dimensions. It’s a “virtual environment,” according to Zuckerberg, in which you can immerse yourself rather than merely stare at a screen. Virtual reality headsets, augmented reality glasses, smartphone apps, and other gadgets might theoretically be used to meet, work, and play in the metaverse.

It may sound like science fiction, but computers that fit in your pocket, driverless cars, and microwaves that talk to you were all science fiction not long ago. Technology advances whether we like it or not, and “fortune favors the bold,” as a classic Facebook motivational banner in the company’s headquarters puts it. Despite a massive pushback to Facebook’s issues, which range from disinformation and privacy mistakes to teen mental health and hate speech, Zuckerberg maintains that risky investments to steer the firm in new directions have typically paid off.

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By TIS Staffer
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