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Mark Zuckerberg Should Make Facebook 'Facebook' Again

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  • Mark Zuckerberg enters the metaverse, but needs to refocus on other things.
  • The Meta CEO must prioritize increased engagement and revenue in the company’s core practices.
  • Meta is reporting third-quarter earnings next week, with analysts calling it a “successful or failing quarter”.

Meta, the company formerly known as Facebook, should focus on building Facebook Facebook Again.

Over the past year, CEO Mark Zuckerberg has focused on his passion project: the metaverse. It’s a squishy concept that can describe many things, but in the broadest sense it’s the idea of ​​people connecting with each other through virtual worlds rather than a traditional social network.

But as I wrote recently, Meta’s massive return to metadata has been a disaster, with little to show apart from a mediocre experience, increasingly expensive headphones, and the stock’s drop over 60% this year.

Instead, Zuckerberg should prioritize supporting Facebook, Instagram, and WhatsApp, his company’s core apps, which feel largely neglected while spending $15 billion on Meta’s metaverse project.

Facing the barrel of a potential recession, Meta should be increasing engagement and revenue for these apps, which have billions of users worldwide. Meanwhile, Horizon Worlds, Meta’s main metaverse app, has just 200,000 monthly active users, The Wall Street Journal recently reported.

In particular, Instagram is still the crown jewel of Meta, even though it has been facing headwinds lately. Keeping users happy on the app and preparing a plan for the years to come should be the company’s #1 priority. Meta said in its second-quarter earnings, Reels grew, accounting for 20% of the time people spend on Instagram.

Rather than piss off users by trying to make Instagram a TikTok clone, Meta should spend its time and energy pinning it to make as much money off of it as possible without shutting people down.

He must want to do the same with WhatsApp, the world’s most popular communication app. The platform is ad-free to protect its identity, above all as a user-friendly service. But Meta has promised to leverage its popularity in other ways to generate revenue, including paid features.

Yet Meta invests billions of dollars in an idea, rather than focusing on its proven applications. maybe Look at the returns five or ten years from now.

Left unchecked, a bet of this size risks alienating investors and employees while facing choppy economic waters.

Zuckerberg will show us his report card this week

Mark Zuckerberg as avatar in Connect 2022

Facebook/Meta



Meta reported third-quarter earnings next week, and Wall Street is already spooked. Analyst Neil Campling described a recent metaverse presentation by Zuckerberg as “hopeless” and said “no wonder investors are getting desperate”.

Investment firm Bernstein called this a “or breaking quarter” in a recent note and said turnout numbers would be “critical” for the company this quarter.

“We believe the bear case will only rise louder if the meta does not provide increased information on the call suggesting that mass engagement across the app family is stable,” Bernstein analysts said.

Analysts think a comeback is possible by the end of the year and by 2023 if Meta increases the ad load of, among other things, TikTok-like video product Reels.

Meta’s revenue fell in the second quarter for the first time in a decade that the company was publicly traded. Zuckerberg blamed the crime on an “economic downturn” affecting the digital advertising business.

Apple was a key part of the problem. Last year, the tech giant rolled out an iOS privacy change that asked users if they wanted to stop being tracked on other companies’ apps. Meta responded at the time, saying that advertisers “may see an overall decline in ad performance and personalization, and an increase in cost per action.”

To escape a future scenario where Apple is a dominant force that can disrupt his business with a single software hit, Zuckerberg seeks to invent the next future platform.

But it’s rarely established companies that are creating the next big platform, so Zuckerberg’s vision of the metaverse seems more suited to a VC-backed startup than a company-wide rally cry.

Apple is also exploring future platforms, but much quieter than the Meta (its own VR headset is reportedly coming soon). But the company wasn’t penalized by Wall Street for this because unlike Meta, it’s still focused on growing its core business sectors.

This makes Zuckerberg’s metaverse a Meta vs. It hasn’t stopped Apple from pushing the competition, so it’s clearly taking up the top space.

“It’s a competition of philosophy and ideas that they believe in by doing everything themselves and firmly integrating that they create a better consumer experience,” Zuckerberg said at a meeting with employees this year about Apple’s strategy, according to The Verge. .

But maybe Zuckerberg should take a page out of Apple’s book, prioritize proven cash cows to keep investors happy, and pipe the metaverse material to the garage where the moonshot projects belong.

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