The news: Wall Street remains bullish on metaverse-related technology, with some analysts even predicting it could grow into a $13 trillion industry by 2030, per Bloomberg.
Meta’s misses: The initial buzz around the metaverse—heralded as the future of gaming, live events, business and productivity, real-estate, and social networking—has waned considerably as investors take a more sober wait-and-see approach.
Virtual reality check: Despite the red flags, Wall Street analysts see metaverse opportunities as an area for growth. Investors are far less enthusiastic, though, and are holding off on buying into metaverse proponent Meta.
Their cautious outlook is a result of the current era of uncertainty, but it has been exacerbated by Meta’s precipitous drop in value.
What’s next? Mai predicts that, “rather than develop the metaverse in-house, Meta will go on an acquisition spree and buy up companies that are innovating way ahead of them in the space.”
What’s the catch? The company has historically opted to acquire rather than compete, as evidenced by buying WhatsApp, Instagram, and Oculus. New acquisitions may be unlikely in the short term as Meta struggles to break even. This could lead investors to seek less nebulous metaverse platforms players to invest in.
Go deeper: For more in-depth analysis of the metaverse in tech, retail, marketing, crypto, healthcare, and China read our Metaverse Report.
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