An investment banker and shareholder in Meta-now-known-as- Facebook warned investors in an open letter that they are losing faith in the company.
Brad Gerstner, the chair and CEO of Altimeter Capital wrote in an open letter that he lost the confidence of investors due to the increased spend by Meta.
Skepticism from both the press and Gerstner's fellow stakeholders who believed that the core business hit a wall last fall was affirmed when, after the company changed its name to Meta and began spending billions on building out CEO and founder Mark Zuckerberg's obsession
Since then, the decline in share price mirrors the lost confidence in the company, not just the bad mood of the market.
Gerstner noted that people are confused by the metaverse. It might not be a problem if the company invested $1-2B per year into this project.
An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards.
The core business of Meta is one of the largest and most profitable in the world. He said that all it needs to do is get its swagger back.
The shareholder wants to fire a lot of people and stop spending a lot of money.
If for no other reason than that, he's already in the midst of significant layoffs, it seems like he's not going to back down.
It's a shame to say it, but it's doubtful that Meta will get its act together soon.
Facebook metaverse users have quit in a month, according to a leak.
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