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Mark Zuckerberg Burned $500 Billion Renaming Facebook to Meta

Facebook founder Mark Zuckerberg announced at the Connect 2021 conference that Facebook will no longer be called that. Instead, it would be called Meta in recognition of the company’s new start in the north, namely the Metaverse. Also read – How to unlink Facebook profile from your Instagram account

“To reflect who we are and the future we hope to build, I’m proud to share that our company is now Meta… Our mission remains the same – it’s still about bringing people together.. “But all of our products, including our apps, now share a new vision: to help bring the metaverse to life. And now we have a name that reflects the breadth of what we do,” Zuckerberg wrote in the founder’s annual letter, which he shared during the announcement. Also read – WhatsApp rolls out ‘Safety In India’ resource hub to keep users safe online

Now, ever since Zuckerberg said Meta would focus on building technologies for the metaverse, there has been an increased buzz in the tech world with companies in various industries developing products for the metaverse or developing their own metaverse. Clearly the race has begun. While the grass on this side of the lawn may look completely green, it doesn’t look quite as good on the other side. Also read – Meta is working on a universal language translator to make socializing in metaverse easy

New York Magazine reports that Meta has lost $500 billion of its market cap value since its value in August 2021 and that about half of that value — about $240 billion — was lost in one day when the Facebook founder made the fate-changing announcement. In addition, the report says the impact of the fall was such that Meta, which was once the seventh largest company in the world by market capitalization, dropped out of the top ten to be replaced by Warren Buffett’s Berkshire Hathaway and Chinese giant Tencent. .

The report also points to other reasons why Facebook (now meta) loses money. According to the report, revelations about the harmful effects of social media by whistleblowers and changes in Apple and Google ad-tracking policies that prevent people from allowing companies, including Facebook, to track users online have made it incredibly difficult. for Facebook to collect precious data that the it is a treasure trove for advertisers. Change in Google’s model has made Facebook less profitable. Add to that the stiff competition the company faces from TikTok — something Zuckerberg has already acknowledged in the company’s latest earnings call.

This isn’t to say Zuckerberg isn’t rich or Meta isn’t hugely profitable. None of that is true. Both Meta and Zuckerberg have pockets deep enough to allow for what appears to be a wild chase at the moment. And who knows, one day, one day, we might all be living in Zuckerberg’s dystopian dream.

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