According to an open letter from shareholders to Mark Zuckerberg, CEO of Meta, the internet giant’s investment in the Metaverse has been labelled “super-sized and scary.” This information was obtained by Cointelegraph.
Cointelegraph said that the shareholder has pressured the corporation to cut back on its investment in the Metaverse and its related technology division as a result of a significant decrease in the stock price over the previous 18 months.
On October 24, an open letter was published that was addressed to Mark Zuckerberg and the board of directors. It was written by Brad Gerstner, the CEO and founder of technology investment firm Altimeter Capital. Hedge Follow estimates that Altimeter Capital owns around 0.11% of Meta.
An estimated $100 billion or more investment in an unknowable future is enormous and terrifying, even by Silicon Valley standards, the speaker said. The company has stated that it will invest $10 to $15 billion annually on its Metaverse project, which includes AR/VR technology and Horizon World, but it “may take 10 years to deliver results.”
As opposed to the Metaverse, which “has the potential to generate greater economic output than the internet itself,” he has recommended the firm to focus more of an emphasis on artificial intelligence (AI).
He stated, “We believe Meta is very well positioned to employ AI to improve all of its existing offers,” despite the fact that most firms will find it challenging to commercialise AI.
The Bank of America lowered Meta from a “buy” to a “neutral” rating on the same day as Gestner’s remarks, in part because of its Metaverse investments, which are anticipated to continue to be a “overhang” on the company owing to the “lack of development” and “new competition from Apple.”
Co-founder of Ethereum Vitalik Buterin predicted on July 30 that the Metaverse will exist and that attempts to implement it by businesses like Facebook will “misfire” because it is “far too early to determine what people actually desire.”
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