An open letter from a shareholder to Mark Zuckerberg (the CEO of Meta) has categorized the investment of the tech firm into the sector of Metaverse as Huge and scary.
The shareholder has persuaded the firm to reduce the respective investment in the innovative space and the tech branch related to this field at a point when the stock price of the venue has witnessed a drop, placing it at the figure where it was standing eighteen months ago.
The Open Letter of a Shareholder Warns Meta CEO to Decrease Investment in Metaverse
The letter was directed at the Meta CEO as well as the directors’ board. The founder and CEO of Altimeter Capital (a tech investment company), Brad Gerstner, authored the letter. He possesses nearly a share of up to 0.11% in Meta, as per Hedge Follow.
As per Gerstner, the venture of Meta into the world of the Metaverse – despite being significant – should not take such a huge investment as it is being given at the present.
He mentioned that the firm has declared investments of more than $10 to $15B yearly in this project, taking into account Horizon World and AR/VR tech, however, ten years might be taken by it to offer yield results.
He added that an anticipated amount of more than $100 billion to be invested in the future that I unknown seems to be oversized and scary.
Instead of this, he persuaded the venue to provide more attention to artificial intelligence (AI) while less on the world of the Metaverse because additional economic productivity is potentially offered by the former one in comparison with the latter.
Meta Goes through a 55% Decline
The remarks of Gerstner are witnessed on the day when Meta was downgraded by the Bank of America from a valuation of “buy” to just “neutral.”
This was in part because of the thing that the Metaverse investments thereof are likely to be still an “overhang” in the case of the stock due to a deficiency in progress as well as the latest competition posed by Apple.
According to Gerstner, an enormous decrease of more than fifty-five percent has occurred in the stocks of Meta, showing a significant gap in comparison with its big-tech fellows which have fallen by only nineteen percent.
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