Meta's shareholder articulates concerns regarding Zuckerberg's lavish expenditures on the metaverse.

Facebook investor Brad Gerstner  wrote an open letter Addressing Zuckerberg, Gerstner expressed concerns about Meta's overwhelming financial commitments to the metaverse. He directed the communication to both Meta's CEO and the board of directors.

Starting off the letter, Gerstner remarked, \"As long-term shareholders, we are invested in the future of the company.\" This line underscores the detrimental impact that Zuckerberg's poor choices have on the investors. The purpose of his letter is to motivate Zuckerberg to \"refocus and streamline the company's objectives moving forward.” He pointed out that trust among shareholders in Meta is dwindling, claiming that the tech titan has hastily jumped into the metaverse endeavor and the renaming to 'Meta' caught everyone off guard.

Throughout this year, Meta has consistently struggled, experiencing significant declines and financial setbacks. Over the past year and a half, the share price has plummeted by 55%, and the price-to-earnings ratio has significantly decreased from 23x to 12x. He also advocated for reduced operating costs, including further layoffs.

"Meta needs to regain its former self. It's crucial for them to rebuild the trust of investors, employees, and the tech community to attract and retain top global talent. In essence, Meta must become more agile and focused,\" he asserted.

Gerstner wrote.

Meta’s problem with the metaverse

Gerstner elaborated on the rising costs at Meta: \"The company's annual capital expenditures have jumped from $15 billion in 2018, 2019, and 2020, to a staggering $30 billion in 2022.\"

"To put it into perspective, when you factor out the hefty investment in the metaverse, Meta is committing more capital than the combined investments of Apple, Tesla, Twitter, Snap, and Uber!\"

Gerstner's commentary was aimed directly at Zuckerberg.

He believes that advancements in AI could significantly benefit Meta and its users; he remarked that investment in AI is timely. Despite Zuckerberg channeling less funding into the metaverse compared to AI, the former's venture has attracted excessive scrutiny and confusion. According to him, the concept of the metaverse remains unclear to many.

"Instead, the organization has committed to annually invest $10–15 billion into a metaverse initiative, primarily encompassing AR/VR immersive experiences. This venture might take up to a decade before any tangible results are seen. A projected investment exceeding $100 billion in an uncertain future is monumental and daunting, even by Silicon Valley’s standards,\" he commented.

Gerstner exposed Meta’s mistakes.

In terms of the metaverse, he recommended that Meta cap its annual investments at $5 billion, suggesting it adopt clearer objectives and metrics for success rather than the vague and expansive plans currently in play.

Criticism of Meta's direction isn't limited to investors alone; various media outlets have voiced their disapproval of Zuckerberg and the company's recent endeavors, including Yahoo Instagram and Facebook users can now share NFTs. the Quest Pro VR headset that costs $1,500 .

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