Mita shares have fallen more than 70% since the beginning of the year. On November 9, the company announced the layoffs of 11,000 employees, or 13% of the total workforce.
Shareholders value each dollar of the company’s sales at half that of Alphabet, Pinterest and other competitors, and one-third less than that of Snap or the average Nasdaq 100 company.
Research firm Monness, Crespi, Hardt & Co. writes that Wall Street’s assessment of Meta’s vision of the VR project is an “enemy within the company”. He also called on Altimeter Capital Management to reduce the company’s “huge and terrifying” investments to half of last year’s spending.
Another option might be to spin off the company, allowing Metaverse’s business to grow without the anticipation and wrath of the markets.
“You can raise separate funding or set up a private company that Zuckerberg and others fund, it’s very normal and you can see multiple companies break up and separate businesses,” said Ansari of Graycroft Partners.
The Reality Labs chapter provides liquidity to the company’s core activities in light of the slowdown in the advertising market, new features on Apple iOS devices to enhance privacy and limit the effectiveness of ads, and competition with TikTok and similar apps.