The market is very dynamic, and we even wonder if it is possible for a company worth 1.2 billion dollars to go through some kind of financial turbulence or even a crisis. The answer is yes! This is because in the last few months, Facebook has lost more than 250 million dollars of its value. We also know that Facebook has been losing many users around the world and is facing several lawsuits in courts around the world due to its supervision, collection and storage of user data.
If all the commentary we have in the financial world wasn't enough, Mark Zuckerberg himself announced to his directors to prepare, because Facebook will go through some winds, some storms, some crises over the next few years; he called it “hard times will come.”
Even Facebook's big bet on the Metaverse, which is now Facebook's new name, has reduced the company's own investments in its future by reducing the hiring of engineers by almost 30%, considerably reducing technological investments; as if that were not enough, there is a huge community of experts saying that the announcement of the metaverse was anticipated and considered inappropriate for the moment, and that Facebook itself does not have a defined project, does not know where it wants to go with the metaverse, or what it represents.
The reasons for this drop in Facebook's revenue and financial income are due to several reasons, some of which we can mention, TikTok for example, which has been growing a lot all over the world and conquering the age group of those who are not opening their accounts on Facebook, Apple that changed control and management of iOS privacy, meaning that iPhone users do not have their data exposed, thus, Facebook is unable to deliver the appropriate ads as advertisers contract, having fewer advertisers, fewer ads, fewer buyers from advertisers and less revenue.
Could Facebook be a repeat of Kodak, which was once considered an innovative company but did not remain in the market? Could Facebook be a “new” Orkut, and will it not be ostracized any more alone?
Or is Mark Zuckerberg proving what he himself said about the technological future: “The future will be private.”
We don't want to believe that a bigtech like Metaverse could cease to exist in the market, but that there will be major changes and adjustments, oh! that's right!