- Meta Platforms will shut down another of their divisions.
- The company announced a full-fledged implementation of NFTs on Instagram.
- META stock was changing hands at a market price of $112.25 during pre-market.
Another Meta Division Going Down
Meta Platforms (NASDAQ: META) has managed to stay on top of metaverse news since it rebranded themselves from Facebook. Last week, Mark Zuckerberg announced that they are letting go of 11,000 employees from the company. Now Reuters reported that the organization is putting a stop to developing Portal and a couple of its smartwatches.
Covid pandemic exploded the demand in Meta’s video calling devices as it allowed the individuals to connect with their family and friends. But the pandemic’s end led the demand to fall, and the company decided to remodel their business from B2C to B2B. According to research, Portal had only 1% of market share in the display segment.
The company was working on its smartwatches but there’s not enough data about the development. But it appears like Meta Platforms will put the lock on one of their shops. Mark Zuckerberg has already played a risky game by putting a bet on the metaverse, and now events like this are clear indicators that the organization needs to fill the leakages of the ship.
Though Zuck Bucks is trying to implement new updates on its family of apps to attract the users. Earlier this month, the company announced that they will soon allow the users to trade, mint and sell non-fungible tokens on the photo sharing platform.
According to the company financials, Meta has lost over $15 Billion alone in metaverse research this year and $36 Billion since 2019. They unveiled their AR/VR goggles Meta Quest Pro on 25th October 2022. But the device was slightly expensive to the general public. Company revealed that they have generated $1.5 Billion from the Quest Store to this date, which is still a portion of what the company is spending.
META Stock Price Action
META stock price has shed nearly 50% from its value since April 2022. META share traded at $234 during the month. It maintained a resistance level of around $235, till mid-May 2022. A bear run is visible since. The share is currently trading at the market value of $113.02 at the time of publication.
With the ruthless spending Mark Zuckerberg is doing, it won’t come as a surprise that a tier company that ruled the social media once, fell by the face. Company’s fierce rival, Twitter, is already experiencing a plunge in their daily active users, and experts believe this may send a flying blow to the social media industry.
Source: https://www.thecoinrepublic.com/2022/11/19/another-blow-to-meta-as-the-company-puts-halt-on-portal-and-smartwatch-development/