![]() ![]() TikTok has grown at great speed in part because its algorithm is so good at predicting what people want to see.īy contrast, Meta's flagship metaverse offering for consumers is falling short of the company's own expectations. Last October, the company said during an internal talk that people were spending 20% more time on Reels because of improvements to the company's algorithms, according to a report in the Wall Street Journal, which was already a step in the right direction. By enhancing the machine-learning algorithms used by Facebook's ad tools, the site is drawing deeper correlations about users to better understand them for targeting, without collecting more data on them.Īs Zuckerberg highlighted on Wednesday night, Meta is also trying to use AI to make more effective recommendations on Reels. He spent the last year investing more heavily in artificial intelligence to help fill the data void created by Apple's privacy-related changes to iPhones and iPads, which cost Meta an estimated $14.5 billion in lost ad revenue in 2022. On the latter, Zuckerberg is making progress. Zuckerberg should have invested in the metaverse as a long-term research project - which he has admitted is many years in the making anyway - and instead worked on more effectively cleaning up toxicity and misinformation across his apps and on bolstering Meta's core product, Facebook's ad business and content feeds. Meta's attempts to sell virtual reality headsets to employers for work meetings is poorly thought out since, in the rare cases that enterprises are buying such gear, it is for training new recruits - not meetings, for which interacting in VR is still physically uncomfortable for most people. The metaverse should never have become the company's primary focus. ![]() ![]() That's admirable, but it has also risked neglecting his fiduciary duty to fellow shareholders. Zuckerberg, who has supreme command of Meta through his majority voting shares, has said he likes being in a position of having to fight against naysayers, and has spoken with conviction and sincerity when describing his vision for the metaverse. Along with the buyback this may have helped push Meta's shares up 20% in after-hours trading on Wednesday night. ![]() That's why it was likely a relief for investors to hear him paying significant attention on Meta's earnings call to his bread-and-butter business: social media. Zuckerberg's obsession with the metaverse and his expensive strategic pivot has put pressure on the company's stock price, which declined 60% over the last year, and it still looks years away from being a viable business. More important, Chief Executive Officer Mark Zuckerberg replaced much of his usual talk about the still-to-be-realized metaverse with pledges about a new era of “efficiency” for Meta, on the heels of slashing thousands of jobs, and a refocus on artificial intelligence, echoing where other tech rivals like Google are placing more of their bets. Meta's decline in ad revenue for the third straight quarter wasn't as big as expected there was a $40 billion buyback for shareholders and daily active users - Meta's “North Star” for years - blew past the psychological 2 billion barrier, according to fourth-quarter earnings it announced on Wednesday night. may have got caught in a downward spiral over the past year, but Mark Zuckerberg seems to be putting it back onto a more fruitful direction, at least for now. ![]()
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