Meta Shareholders’ Discontent – The Hope to Cut Costs
Ahead of Meta’s third-quarter earnings report, shareholders have already begun to display their discontent with the $350 billion company. One significant investment firm, Altimeter Capital, explained how they believed Meta can work to streamline their operations following their 60% decrease in share price from the last year. To follow suit with most of the tech industry, Altimeter Capital’s Chief Executive Brad Gerstner details that Meta should cut employees and limit the amount of investment into the Metaverse.
During times of high inflation, costs bear even greater damage to companies, especially when reporting their quarterly earnings to Wall Street. Since Q2 of last year, Meta had increased their employee headcount by 32%, ending this year’s Q2 at 83,553. With slowing growth and increased competition by several social media platforms, Gerstner also touted for the company to cut back on their spending on Metaverse, which currently requires $10 billion annually. Regardless of what Meta and CEO Mark Zuckerberg decide, investors should wait diligently to see the company’s Q3 performance this week and see for themselves if the fears of some shareholders are a reality.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.