Mark Zuckerberg’s journey into the metaverse has been anything but smooth. His once risky bet, which cost him more than $100 billion, now appears to be paying off handsomely.
His net worth has risen dramatically to $201 billion in less than two years, almost sixfold. Meta Platforms Inc.’s skyrocketing stock price, which is up about 60% this year, is largely driving this rise.
Consequently, Zuckerberg is once again the fourth richest person in the world, behind only Jeff Bezos, Bernard Arnault and Elon Musk.
The Metaverse: A mixed bag
Despite these astonishing figures, the metaverse remains controversial. Although Zuckerberg claims this is the future of social interaction, many remain skeptical about it.
Some doubters believe that Meta’s performance resulted in more losses than gains. Some critics have argued that Zuckerberg’s fortunes lie less in the metaverse concept itself than in his attempts to capitalize on recent AI leaps.
Interestingly enough, Meta has made enormous financial stabilization efforts. This includes the start of the $50 billion share buyback program and a 25% workforce reduction to streamline the organization.
A shift in focus?
Zuckerberg continued to support the metaverse despite financial difficulties. He passionately discussed the integration of the real and virtual worlds during recent events, envisioning a period when people communicate through holograms or avatars.
Nevertheless, some shareholders and insiders warn of caution. They have expressed reservations about investing more money in what many see as a project that is far from gaining widespread acceptance.
Moreover, there is a growing belief that Zuckerberg should focus on Meta’s main applications, which generate almost all of the company’s revenue: Facebook, Instagram and WhatsApp.
As the technology sector becomes more competitive – especially as rivals like Google and Amazon make great strides artificial intelligence— Zuckerberg might want to reconsider his goals.
Looking ahead
As Meta continues to introduce new products, such as the Quest 3 VR helmet and Ray-Ban smart glasses, these innovations should ultimately help the company increase its revenue.
Yet many investors who prefer to see profits sooner rather than later harbor great skepticism. The company’s future prosperity will largely depend on its ability to incorporate new technologies into its current systems.
Featured image of Fortune, chart from TradingView