As the pioneer of the Metaverse ecosystem, Mark Zuckerberg had no idea what awaits him after plunging massive funds into the virtual ecosystem’s development. According to Bloomberg’s Billionaire Index, the tech entrepreneur has lost a fortune this year to Metaverse investments.
Meta’s CEO Suffers Huge Metaverse Losses
The billionaire has lost a whopping $71 billion in investment this year. The loss sees the Meta CEO occupy the 20th spot among the world’s billionaires after coming down one place from his 2014 standings.
However, Bill Gates and Jeff Bezos are the only two billionaires with more fortunes than the 38-year-old Meta CEO. The Facebook founder has lost more than half of his fortune with the latest incident.
Mark Zuckerberg’s first forays into the digital ecosystem began last October after changing his investment focus.
Consequently, he changed the name of his first company, Facebook, to Meta, indicating his newfound investment drive. After investing heavily in Meta, the Metaverse firm has experienced a dwindling market performance.
Similarly, in February, the company revealed that there had been a reduction in the number of monthly users on Facebook. This caused a sharp decline in the value of the company’s shares. As for Zuckerberg, this implies a $31 billion reduction in his net worth.
Meanwhile, a cursory look at Zuckerberg’s dwindling fortune shows that Meta’s huge investment in the Metaverse is primarily responsible for the setback.
According to Laura Martin, an internet analyst, TikTok is currently swaying users to its platform and has proven to be Meta’s greatest competitor. Martin added that this is where Meta needs to put in the effort.
However, introducing reels on Facebook did little to bring back users who are more attuned to TikTok’s immersive video-streaming features.
In contrast to its FAANG peers, Meta has performed woefully in 2022. As a result, Meta’s valuation dropped by 57%.
Zuckerberg’s Metaverse Drive
The tech entrepreneur has been the leading voice in the drive to expand the virtual ecosystem since last year. Following the rebranding of his social media firm to Meta, he has committed resources to invest in the burgeoning virtual world.
He is credited as the driving force behind the rapid growth of the Metaverse. However, this is not possible without its attendant challenges.
Following Meta’s business in the Metaverse began in October last year, but issues began unraveling in February this year as the company struggled to balance its books.
There has also been a significant decline in the firm’s net income due to its massive investment in the Metaverse. Moreover, the company’s stock has continued to plummet steadily from $323.00 per share to the current $148.
Still, Zuckerberg is not deterred, as he was reported to have told shareholders in May to expect more cash crunches as the Metaverse investment continues to take center stage.
Meta’s stock is declining after a dismal performance, and Zuckerberg seeks a solution to the dilemma.