[HN Gopher] Meta's value has plunged by $700B. Wall Street calls...
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Meta's value has plunged by $700B. Wall Street calls it a "train
wreck."
Author : heavyset_go
Score : 32 points
Date : 2022-10-27 21:03 UTC (1 hours ago)
(HTM) web link (www.cbsnews.com)
(TXT) w3m dump (www.cbsnews.com)
| MBCook wrote:
| They spent $9,000,000,000 on the Metaverse in the first 9 months
| of this year.
|
| That's $1 billion a month.
|
| They are currently peaking at 200k monthly users (who may only
| spend 5m a month). Honestly that's way higher than I'd have
| guessed. I wonder what the number would be if you filtered to
| people who spent over 5 hours or logged on at least twice a week?
|
| Anyway that's $5,000 per user per month. $60,000 per user per
| year.
|
| You could _easily_ find people who would sit in the Metaverse all
| day every day for less than that because it would pay more than
| their job.
|
| What an insane burn rate. On a product even the product's
| developers don't want to use.
|
| And this is the future of the company?
| smt88 wrote:
| Horizon Worlds (or whatever it's called) is probably among the
| biggest failures in the history of business.
|
| Any sane shareholder would oust Zuckerberg at this point, but
| sadly the only vote that matters is his.
| ThalesX wrote:
| I have a Quest 2 for a year now and keep trying from time to
| time to download the app to experience it. It's not available
| in my region. If that's not pure metaverse irony, I'm not
| sure what is.
| MrFoof wrote:
| At $1B a month, that's approximately on par with the GDP of an
| island nation like Sint Maarten or Grenada.
| Finnucane wrote:
| The rest of us call it 'a good start'.
| smt88 wrote:
| Billions of dollars for <200k users is a "good start"?
|
| TikTok, BeReal, Gas, and even Meta's social networks (FB, IG,
| and WhatsApp) all performed at least an order of magnitude
| better than that for the amount of money spent.
|
| Imagine any other video game spending that budget and selling
| less than a million copies. It would be the laughing stock of
| the industry.
| tpxl wrote:
| I believe the parent poster may be referring to this being a
| good start to facebook failing, not a good start for their VR
| project.
| oliveshell wrote:
| Yep. For those who haven't heard it, there's an old joke
| that goes something like:
|
| "What do you call 500 lawyers at the bottom of the ocean? A
| good start!"
|
| Yes, it's tasteless, but it gives the context within which
| I interpreted the parent comment.
| brooklynite429 wrote:
| They are spending $1 billion dollars a month on the metaverse for
| what? I really don't see it.
|
| Mark doesn't have the taste to take this plane airborne. VR,
| moreso than other platforms, will require great design, artistry,
| music. I haven't seen anything in Meta's VR foray that looks
| interesting, well designed, nifty or just plain cool. It's a very
| reductive interpretation of virtual reality . You have a
| limitless sandbox and the most creative thing you can show
| is...meeting software? A complete lack of imagination.
|
| Doesn't help that Mark himself keeps talking about the future -
| the next five, eight, ten years. He himself even admits the
| experience is not where it should be. Why would anyone buy any of
| this stuff then?
|
| Can't wait to see what Apple is putting together.
| makeitrain wrote:
| Maybe it's about finding VR tech to patent before anyone else.
| ThalesX wrote:
| > VR, moreso than other platforms, will require great design,
| artistry, music.
|
| VRChat has some amazing experiences. In a way, it's a lot
| closer to being a Metaverse than Meta.
| SevenNation wrote:
| This leaves company shares with a price to earnings ratio of 12.
| Given the size of the company and difficulty such companies have
| growing, this looks to be about fair value.
|
| An investor with a long time horizon and the ability to see past
| the obvious social ill this company is committing might find a
| good entry point soon.
| koyanisqatsi wrote:
| It's a recession.
| fred_is_fred wrote:
| Which is a great reason to not blow $15B on a shitty version of
| 2nd life.
| mpweiher wrote:
| Well, since 1 year ago, Apple stock is down 2.7% whereas
| Facebook is down 69%.
|
| I think there may be _some_ FB-specific issues at play...
| tamaharbor wrote:
| First it was MySpace, and now this.
| pascalxus wrote:
| I assume this means that employee compensation is nearly half
| what was before, since almost half of the comp is just stock,
| right?
|
| With the astronomical COL over there, those employees in palo
| alto are probably gonna be hurting really bad next year and
| beyond.
| [deleted]
| bezoz wrote:
| (Disclaimer: i am an ex meta employee)
|
| This is unfortunate because genuinely i like where they are going
| with VR and they have pushed the technology forward considerably.
| Their metaverse vision makes no sense to me though but hopefully
| they course correct
|
| I do hope meta recovers from this. The real risk is going to be
| mark's mental health and his ability to stay focused amongst this
| insanity. We shall see
| cuteboy19 wrote:
| The investor meeting did not inspire confidence. He seems to be
| all in and has no plans of course correction
| pinewurst wrote:
| That's a risk I'm prepared to take. :)
| cityzen wrote:
| drlobster wrote:
| Don't be a big meanie
| [deleted]
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