- Wall Street is worried that Mark Zuckerberg will double down on the metaverse.
- Zuckerberg’s Meta company would be the owner of the data it collects in the metaverse.
- Zuckerberg would not have to worry about any other companies interfering in his business like Apple.
Mark Zuckerberg is doubling down on the metaverse — much to Wall Street’s chagrin — because in the metaverse, Zuckerberg has full control.
This is important to Zuck, because unlike in real life, he won’t have any competition. He will own the’verse. (Separate that from the challenges He has faced off against Apple when it tightened up its advertising controls — or squaring up against ByteDance as TikTok puts up big numbers with the Gen Z set.)
It’s a thesis analysts at investment bank Itaú BBA shared with clients earlier this month — and one they’re still sticking to. The metaverse makes sense, because Meta is the owner of the data and doesn’t need to share with anyone else.
Only way to get into Meta’s metaverse at the moment is via its Horizon Worlds App Quest augmented reality headsets, which are extremely expensive — not, for instance, on an Apple device.
However, this could change if Meta finally ships the product to mobile browsers and web browsers. For now, those versions are being delayed, and Zuckerberg sees the benefit of. in-person “presence”As a key selling point for his gated system, he uses the experience of the metaverse in virtual reality to sell you on your own gated system.
With Zuckerberg’s approach, the Itaú analysts wrote, Meta would control “all three variables,” — behavioral, transactional, and inventory. This means that you can control how you act in metaverses, how you purchase things in metaverses, and even the metaverse itself.
Meta’s shares dropped 25% Thursday morning after the company reported its results the day before. In the third quarter, $4 billion had been spentOn the unit that is responsible for creating the metaverse. Its stock is down by more than 70% in the first half of this year. After rebranding Facebook as the meta-focused Meta in September, Zuckerberg’s net worth has plummetedBy more than $81 trillion, down 68%
Zuckerberg, the founder of Facebook and the CEO, has defended the billions that he invested in his passion projects on a conference call this week with investors. Reduce the company’s headcount.
Zuckerberg regards the metaverse, which he believes is the next stage in the internet’s evolution, as a long-term investment. However, he admits that there is still a long road to building the next platform.
Zuckerberg sees investing in a passion project as more than just gaining an advantage over the competition by defying Wall Street so strongly.
Back to those three variables: Itaú analysts noted that Meta dominates in behavioral data, while Google and Apple dominate in inventory and transactional data, respectively.
Meta and Zuckerberg both want to dominate everything. It could even be in its virtual reality.
Apple, in particular This is what has driven much of Zuckerberg’s obsessionWith the metaverse. Meta estimated that Apple had changed its iOS rules to allow users the ability to opt out from being tracked across ads. Meta said this would result in Apple losing at least $10 billion of ad revenue.
Zuckerberg reiterated his views on Wednesday’s conference call. Saying there are “big risk and we see problems”Information regarding Apple’s policy modifications.
Itaú wrote in another note on Wednesday, following Meta’s earnings, that it needs to see “less unpredictability of Apple/iOS changes,” among other things, to change its outlook for the company (it also wants to see more visibility for the development of the metaverse).
App tracking is vital to Meta’s ads business. Meta’s hardware would allow access to the metaverse, so there wouldn’t be any concern about Apple or other companies interfering with that business.
Zuckerberg stated Wednesday that you can create new and innovative things if you have more control over the stack.
Now, he just needs to convince the public — and His employees — to actually use it.
