What's in a name?: Meta loses $500B since name change; more troubles

Is the metaverse really the future? That could be a tough question to answer. PC Gamer’s most recent report shows that Meta has lost $500 billion dollars in value since it changed its name from Facebook last year. The company has also suffered a 30% stock market value drop and lost their position on the top 10 richest companies of the world list. Is the tech giant even relevant anymore?

Facebook got its start because of the simple way it provided for over a billion people to stay in touch with friends and loved ones. The company continued its success by acquiring Instagram in 2012 and then the encrypted messaging service WhatsApp in 2014. Now it also owns Oculus and makes Portal devices as well.

But it’s clear that the name isn’t all that changed with Meta. Mark Zuckerberg, CEO of Meta, seems to be steering the company in a new direction—the metaverse, a new field that some refer to as the ‘immersive internet.’ It’s rather novel and many aren’t exactly sure what it is—I actually had to add the word to my Mac’s dictionary to keep it from auto-correcting while I was writing!

Another reason the company is struggling is the availability of other options. While Meta has dominated social media for a long time, it is now facing severe competition from TikTok. The app has made serious headway since becoming available in the US in 2018 and has started to be a significant part of our culture. This is significant given the serious backlash it faced over privacy concerns and the Chinese-American trade war. Why is it so successful? It’s super popular with young people, who now view Facebook as a network for an older generation. It should definitely be considered a force to be reckoned with considering the failure of Lasso, Facebook’s attempt at cloning the network.

Meta is also in significant trouble with the government over many allegations that they have violated law and/or caused hurt to children through their platforms. Also, they are now unable to track user data on many devices after Apple and more recently Google have begun to allow users to opt out of these services, cutting significant income for the company.

One can never tell exactly what will happen, and it’s possible that Meta will be able to weather the storm. But right now it doesn’t look like there are many likes in its favor.

By Charles Metz