Business

Meta: Sheryl Sandberg exits the metaverse

14 years after joining Facebook, Cheryl Sandberg is leaning back and retiring. Her departure as the chief operating officer of Facebook’s Meta parent company and right-hand man to founder Mark Zuckerberg reaches a low point for the company.

Known for adding pleasant anecdotes to investor talks about the small businesses that use Meta’s digital advertising, Sandberg Was crucial in helping the company divert users’ attention to advertising revenue.

When she joined in 2008, Facebook Was a 4-year-old startup with an annual revenue of $ 272 million, a net loss of $ 56 million and several hundred employees. Last year, revenue was close to $ 118 billion and net profit was $ 39 billion. The number of employees jumped to more than 77,800 people. The number of users entering the products each month has risen to 2.9 billion.

However, both Sandberg and Mate found it difficult to manage the complications that came with the scale. Sandberg’s polished presence, advocate for women and the ability to charm Washington were not in line with claims that Facebook allowed election intervention and helped Misleading information.

Investors are a tough bunch. Reputation damage did not interfere with market value while advertising revenue continued to climb by 20 or 30 percent annually. In 2022, however, it is expected to rise by only 7%. Privacy changes have limited Meta’s ability to track Internet users and monitor the impact of advertising.

Sandberg is still on the board. It is also the fourth largest individual shareholder after Mark Zuckerberg, Eduardo Sabrin and Dustin Moskowitz.

But Meta’s advertising business needs more help. Sandberg’s exit comes in the wake of corporate rebranding that continues to confuse investors. Zuckerberg’s aspirations for virtual reality are expensive and yet do not offer a convincing profit forecast. In the last quarter, the net loss of Reality Labs, home of the metaverse project, was close to $ 3 billion – equal to one-fifth of the company’s cash and cash equivalents. Without advertising growth, Meta’s revolution will not succeed.

Meta: Sheryl Sandberg exits the metaverse Source link Meta: Sheryl Sandberg exits the metaverse

Related Articles

Back to top button