From Giant To Dwarf – The Rise Of Facebook And The Fall Of Meta

Facebook Inc, Now Meta had appeared to witness the worst of its kind in the drop of its share price in the past few months taking a page from Google’s playbook when it rebranded to Alphabet. At the time, Google’s reasoning for the change was that the company was more than just a search engine. The company has cloud services, enterprise software, and even an autonomous vehicle branch.

the rise and fall of facebook now meta

Facebook sort of falls into the same category. They own Instagram, WhatsApp, and Oculus. These businesses are more related than Alphabet’s lineup, but different nonetheless. Facebook I believe had this in mind when deciding to rebrand to Meta, as the move incorporates both of these strategies.

First, the name change clearly attaches Facebook to the hottest high-growth trend in the market, an area that I believe is important to note the company will spend billions on in the coming years. And second, it clearly articulates to retail investors that Facebook should be synonymous with the metaverse. “If you want to invest in the metaverse, try starting with Meta,” this screams to a cohort enthralled with high-growth stocks.

After getting knocked out of the top 20 most valuable companies, on September 2021, it tumbled 74%, equivalent to more than $730 billion in market cap going proof, and CEO, Mark Zuckerberg’s fortune has shrunk by more than$100 a billion in the last 13 months. Meta meanwhile will reduce budgets across most teams, even those that are growing, and that individual teams will sort out how to handle headcount changes.

That could mean not filling roles that employees depart, shifting people to other teams, or working to “manage out people who aren’t succeeding,” CEO Mark Zuckerberg said. The cost cuts and hiring freeze are Meta’s starkest admission that advertising revenue growth is slowing amid mounting competition for users’ attention.

Besides economic pressures, the company’s advertising business, built on precise consumer targeting, has lost some of its edges due to new privacy restrictions from Apple Inc. on tracking iPhone users. Also, rival TikTok is attracting younger users away from Meta’s Instagram platform.

You Can Also Check How to switch to WhatsApp Business – Using Cloud API

Zuckerberg is also making an expensive bet on the metaverse, an immersive virtual reality future where he imagines people will eventually communicate, an effort he has said will lose money for many years.

Toluwa Akimbola
Toluwa Akimbola

Toluwa Akimbola has a keen interest in technology and brand storytelling, allowing readers to comprehend and feed their curiosity.

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