26.10.2021 – 20:30
Stock exchanges newspaper
Anyone who wants to play in the trillion league on the stock exchange, like Facebook, is well advised to avoid disappointments in operational business and to keep investors’ imaginations alive. CEO Mark Zuckerberg recognized this in good time and already announced “the next big thing” for Facebook and the entire Internet industry at the Mobile World Congress in 2016: the immersion of users in virtual realities (VR), the should make possible a completely different, even more intensive and personalized user experience on social networks. Since then, Facebook has tried to bring the idea to life – with its own VR glasses, which was followed by a flood of VR apps.
Before VR could flourish into the next big thing for the world’s leading social network, however, the group fell on business practices that the public sees as “big things” in another way. The revelations by whistleblower Frances Haugen, which came to the public in the “Facebook Papers”, cast an extremely bad light on how corporate management deals with the conflict of interests between profit targets on the one hand and the security and wellbeing of society on the other. Facebook now needs the next big thing all the more urgently. It is important to put pink (VR) glasses on the investors before a deeper disillusionment spreads, which can no longer be changed into a spirit of optimism with a melodious new company name such as Metaverse.
The core business with advertising in the classic app family Facebook, Messenger, Instagram and Whatsapp is still robust; that is, unimpressed by the new privacy rules that Apple has introduced for the users of their devices and that have what it takes to change the business of advertising on the Internet noticeably. However, it doesn’t have to stay that way. The messenger service Snap, which has already been labeled as the “new Facebook”, has already felt the consequences of the new Apple rules, even with full force on the stock exchange.
Facebook is rushing to report its VR activities separately in order to make investments and goals transparent. In the event that the dream of the future does not (yet) strike the right note among investors, management is initially helping itself as a first aid measure with a new share buyback program for a slim 50 billion dollars. This and the associated signal that the company is drawing on its full potential should keep the trillion on the stock exchange within reach.
Stock exchanges newspaper
Original content from: Börsen-Zeitung, transmitted by news aktuell