Meta's Layoff: 11,000 People Disappear from Meta-universe
The day is still here for the big tech company layoffs
Just a few days ago, Musk launched a "purge" within Twitter, and it is unexpected that the same drama will be played out in Meta within a few days. At Tuesday's meeting, Zack was said to be frustrated, admitting that he was overly optimistic, which led to the overstaffing of the company. "I'm responsible for the company's failures."
This is the first large-scale layoff in the history of Meta, and will affect more than 11,000 employees, accounting for about 13% of Meta's total workforce.
After the announcement, Meta's stock price soared again: it closed at $96.47 yesterday and opened at $101.72 on Wednesday, immediately surging up to a daytime high of 8%, then started to fall after lunch and finally closed at $101.47, up 5.2%.
Investors may take this big layoff as good news for Meta to improve its profit margin, but behind these numbers are the sorrows and fears of countless ordinary people who have been affected.
With today's layoffs, he has shown the world his determination. Zuckerberg is sorry for this layoff - having said that, it is clear to everyone that for the sake of Meta Universe, Zuckerberg has long decided to do whatever it takes.
The reason for Meta was the pandemic on one hand, which led to a weak economy and Meta was subject to a significant reduction in digital advertising spending by customers. On the other hand, the return on advertising on Meta dropped significantly due to Apple's updated privacy policy. Meta's market growth stagnated in the face of fierce competition from rival TikTok; the new privacy settings for the iPhone gave users new options, which in turn weakened the social media platform's ability to target ads.
Short Positions Pour into Meta
Meta's market capitalization has fallen by more than 70% this year. Although there are reasons for the overall macroeconomic trend to deteriorate, Meta's core social media business is facing a huge threat. At the same time, Meta Universe is simply burning money without stopping, and investors are really slipping away. Here comes the short side.
Stock analysts are freaking out in the face of Meta's last quarterly earnings report. Morgan Stanley is already shorting their stock from $205 to $100 projected for next year. This is their forecast for the next 12 months using the option implied probability model. And other investment banks are following suit.
The graph below also shows the daily short volume. The rise in stock prices could also be due to a short squeeze.
At the end of the article, let's all talk about your thoughts on the meta-universe.
Please leave your thoughts in the comments.
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- Kaixiang·2022-11-10Short term measure but hopefully it can rise against the competition from TikTok2Report
- NancyZhang·2022-11-10The book is burned2Report
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- tiger_cc·2022-11-10Good rise Unemployment print money1Report
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- John_SG·2022-11-10真是的'非死不可'啊!2Report
- d72dka333·2022-11-11demetarialize1Report
- Tailwind·2022-11-11pls sell ur stocks1Report
- Miyami·2022-11-10Lai in me1Report
- Mr_KennyG·2022-11-10Meta share will plunge1Report
- AntLiew·2022-11-13invest in $Clean Energy Fuels(CLNE)$LikeReport
- DannDann·2022-11-11Excellent! Good sharing. Thumbs up 👍👍🏻LikeReport
- oloolo·2022-11-14Thanks1Report
- nickg·2022-11-14👏👏👏LikeReport
- oloolo·2022-11-13Thanks1Report
- oloolo·2022-11-12Thanks1Report
- kuahw·2022-11-12OkLikeReport
- yyhwin·2022-11-12HiLikeReport
- ericbie·2022-11-12[smile]LikeReport
- LTTan·2022-11-12👍1Report