In an open letter to Facebook CEO Mark Zuckerberg, an investor calls for the meta-company to lay off at least 20% of its employees, reduce annual investments by at least $ 5 billion and no more than $ 5 billion annually for that metaverse. . It’s “time to get fit,” writes Altimeter Capital’s Brad Gerstner. With 2.5 million shares, the hedge fund holds about 0.1% of Meta’s shares. Gerstner criticizes the group’s drifting into the land of plenty: too many people, too many ideas, little urgency. When growth slows and technology slows, it is “deadly”.
“Scary, even by Silicon Valley standards”
Gerstner points this outthat Meta’s stock price has dropped 55% in the past year and a half, while the figure for other large IT companies is only 18%. As the group increased spending, investors lost confidence. The core business is known to run into difficulties last fall, after which the group was quick to turn to the Metaverse. People are confused as to what is meant by this, with Meta this includes virtual reality, augmented reality, 3D technology, and Horizon World. If it really takes ten years for the swing to show results, up to $ 100 billion is expected – “a lot and scary, even by Silicon Valley standards.”
Altimeter Capital made public the criticisms on the anniversary of the transition to the Metaverse and renamed it Meta. So far, the vision doesn’t seem to have come close and criticism has recently accumulated around the anniversary. If the company only invested $ 1 billion to $ 2 billion a year in the project, uncertainty wouldn’t be an issue, says Gerstner. Although the high spending on developing the “next generation of communications” is correct, the current 10 billion a year is too much. Overall, however, we know that Meta has more reach, more relevance and more incredible growth opportunities than “almost any other platform on the planet”. The group must now retrieve their mojo.
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