Meta's stock tanked this week amid a fall in profits and revenue as ad sales fell.

Stock of the Week: Can Zuckerberg Clean Up Meta's Mess?

Let's take a look now at our stock of the week. It was a rough one for meta as facebook's parent company reported a huge miss on profit and growing losses stemming from its metaverse division. Well the stock tanking this week, it's down 21% in the past five days after it lost about 25% of its value. In a single session on thursday, investors ditching the shares questioning the Ceo Mark Zuckerberg's rigid dedication to the virtual world that hasn't come anywhere close to a profit. And I also want to take a look at some of the numbers that have investors spooked. So the company losing 9.4 billion in 2022 alone on the metaverse, spending more than 15 billion in total on building the world. So to make matters worse, Meta expects losses from the metaverse to grow in 2023, not what investors want to hear, but its revenue from the metaverse dropping some 50% 50 year over year. While it trimmed its active user goal to just 280,000 by the end of the year, A big cut from the 500,000 that had originally predicted. Well, all of the focus on the metaverse um amid declining ad sales and revenue per users, leading to some frustration from investors and analysts who want to see that the company does have a plan for the short term even or even that the metaverse will actually pay off in the longer term. So market watch Senior Reporter Jon Swartz did join me on the show yesterday to talk about this growing conflict, Take a look remember monday, there was a letter from Ultimate Capital from their Ceo, Mark Zuckerberg in particular meta in general about their misgivings, about the amount of money they're spending on the metaverse. While we're in an economic downturn where ad sales are down, one former investor in metaphor to, well to me says they're chasing ghosts. The metaverse isn't even a cogent idea yet, let alone you know, bet the farm guaranteed bets right. The topic is, you know, it's like several years from now and the problem is because of the way the stock is structured. Mark Zuckerberg will stay admitted as long as he wants to and he will probably answer to only himself and he was so adamant about maintaining this strategy and disproving everyone. Okay, well that was structuring that he talked about happened when longtime chief operating officer Sheryl Sandberg left the company a few months ago Ceo Mark Zuckerberg consolidating his control over the company no longer has a top deputy but instead for executives who run decisions by him and none of them have the power that Sandberg herself had. So the Ceo answering to no one as we heard there but himself. But given the swath of investors leaving the company, he may have to answer some tough questions here in the coming quarters. I was stocked down 70% this year