Business

Facebook shares plummet, Mark Zuckerberg loses 1000 Trillion in wealth

Facebook

Shares plummet, Facebook founder Mark Zuckerberg’s fortune is worth IDR 1,000 trillion.

Meta’s stock performance continued to decline, causing Mark Zuckerberg ‘s wealth to plummet. The CEO of Meta and founder of Facebook, this year had to lose USD 71 billion or more than IDR 1,000 trillion, and only USD 55 billion ‘left’.

As reported by Forbes, Mark Zuckerberg is currently the 20th richest person, whereas previously he was always in the top five. Although his fortune is still huge, this is the first time in eight years that his ranking on the richest people list has plummeted. Two years ago, he was still the third richest person in the world.

The year 2022 was indeed a bad year for tech company stocks as many fell. However, the wealth of Jeff Bezos and Bill Gates did not drop as deep as Mark Zuckerberg.

Before September 2021, Facebook’s valuation was still high, then Mark Zuckerberg renamed Facebook to Meta to develop the virtual universe of the metaverse. According to Mark Zuckerberg, the metaverse will be the future of the internet.

Unfortunately, the concept of the metaverse is still unclear. The virtual reality device to access it is still relatively expensive and bulky, aka not fun to use for long.

This has led to investors not being so sure about the business stakes in the metaverse. One expert even thinks Mark Zuckerberg brought Meta down with him.

A senior fellow at Harvard Business School and former CEO of medical technology company Medtronic, Bill George, sees Mark Zuckerberg as the CEO of Meta Platforms Inc will only make the company fail.

Quoting Benzinga in Jakarta, Tuesday (20/9/22) George said that bosses who forget their deepest beliefs, values and goals as leaders are bound to fail.

George said Zuckerberg was to blame for Facebook losing market share to TikTok. “I think the wealth goes to his head,” George told Yahoo! Finance.

Zuckerberg’s leadership was questioned and came under scrutiny after some challenging quarters at Meta.

“I don’t think Facebook will do well as long as he’s there. He’s probably one of the reasons why a lot of people have turned away from the company. He’s completely lost his way,” George added.

Earlier in June, Facebook whistleblower Frances Haugen said Facebook cannot recover as long as Zuckerberg is its leader. He also suggested that Zuckerberg should step back and allow the changes instead of allocating resources to the rebranding campaign.

In addition, Meta’s other business empire, Instagram, is threatened by the presence of TikTok. But it is possible that Mark Zuckerberg can turn things around, given his wealth of experience.

Is the Metaverse really Facebook’s failed project?

Some are not impressed with Mark Zuckerberg’s vision of the metaverse as the future of the internet. Even this marketing expert said Facebook-style metaverse would not work.
New York University marketing professor Scott Galloway in a recent interview initially praised Mark Zuckerberg as a visionary. As Facebook was being abandoned, he came up with the idea of the metaverse.

Also Read: What is the Metaverse?

But he’s not sure Zuck’s metaverse vision will work. “If he is successful, then this will be one of the impressive achievements,” he said.

“I don’t think they can. I think it’s a big bag of shit,” added Galloway, clearly showing his displeasure with the Facebook-style metaverse.

Facebook
Metaverse

One of the problems that surfaced according to him was Quest’s virtual reality headset, which used to be called Oculus. It doesn’t look good enough to appeal to the audience targeted by Facebook parent Meta.

“People are not impressed with the universe they dreamed up. One of my predictions in November 2021 is that the biggest failure in the history of technology products might be Oculus,” he explained.

To enter the metaverse, people do need to wear a headset, which is currently quite heavy and expensive. Perhaps this needs to be addressed by Meta so that more people utilize the metaverse.

To take care of the development of the metaverse, Meta has a special division called Reality Labs. Well in Meta’s latest financial report, the division lost USD 10 billion in 2021 alone. The amount if converted is around IDR 144 trillion.

Reality Labs as the key technology maker of the metaverse, develops virtual reality headsets as well as augmented reality, both in terms of hardware and software.

Click to comment

Leave a Reply

Your email address will not be published.

Copyright © 2022 LO inc. Media Supported By MASEL Corp

To Top