(HorizonPost.com) – In October 2021, CEO Mark Zuckerberg changed the name of Facebook to Meta in an attempt to begin a shift in his company toward the metaverse. Amid the many scandals surrounding the social media platform, it comes as no surprise the boss would try to change its image. Unfortunately for him, the rebrand didn’t save him from losing about $31 billion in a single day on February 3, as reports showed Facebook users stayed stagnant over the last quarter. As a result of the news, Meta shares plummeted a whopping 24%, knocking Zuckerberg off the Top 10 list of wealthiest people in the world.
The Fall of Facebook
When Facebook first hit the internet, it provided a hub where people could connect and stay involved in each other’s lives no matter where they lived on the planet. In a sense, it made the world a little smaller. The platform quickly grew to include businesses that wanted a digital space to attract more customers. As Facebook grew, so did its problems, including allegations of user privacy violations and information harvesting, fake accounts spreading misinformation, and struggles to crack down on human trafficking.
While Zuckerberg fought all the allegations against the company and made changes to help reinstall confidence in the social media site, there was another problem growing over time – its image. Many young people saw Facebook as an older person’s platform and began throwing their interest to the latest and greatest social media site. Instead of using Zuckerberg’s site, hundreds of millions flocked to TikTok, which reached a billion users in September 2021.
Enter the Metaverse
To help move more toward the CEO’s vision of the future, Zuckerberg changed the overall name of his company to Meta. The move signaled his future intent to reshape Facebook into a digital open-world space where people would interact in virtual reality instead of or in addition to a flat-screen. However, the concept of a metaverse is not only hard to grasp for the general public, but people don’t necessarily want to make the switch. In addition, some experts believe such a place would be a problem for children’s mental health.
While the transformation hasn’t actually happened, the fact that this sudden value plunge occurred within months of the company’s name change is notable.
The Meta CEO blamed TikTok for the fall of his company’s stock and profits over the last quarter. He stated people are changing “how they want to spend their time” interacting online. Perhaps it’s true, or maybe the public is just tired of Facebook altogether. Time will tell.
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