Meta’s plans for the metaverse have not been successful so far. The company rebranded into Meta towards the end of 2021, with plans to venture into the virtual world. The company has invested heavily in this initiative.
Meta’s Q4 2021 financial results underwhelmed Wall Street, and the company’s shares dropped by 20%. Despite the poor performance, metaverse tokens seem to be gaining.
Metaverse tokens make gains
The cryptocurrency market took a nosedive earlier this week, but metaverse tokens remain strong. Contrary to what many people expected, these tokens surged despite the release of Meta’s Q4 financial results.
Decentraland (MANA) has rallied by around 15.7% during the past week. The Sandbox (SAND) has rallied by 8.9% weekly. The gains are significant, given that most cryptocurrencies have not made any weekly gains.
Metaverse cryptocurrencies rallied to all-time highs towards the end of 2021 after Facebook rebranded into Meta. This move by the social media giant led to increased interest in the metaverse, and while some of the hype has died down, some tech giants are still investing in the metaverse.
Meta’s shares plunge
On Wednesday, Meta announced its financial results for the last quarter of 2021. The financial results were not as what analysts had predicted. The financial results led to Meta’s share price dip during the after-hour trading session.
The results showed that the number of active users on the social media platform had dropped significantly. The company’s global daily active users dropped from what was reported during the previous quarter. The number of daily active users globally came in at 1.929 billion, which dropped from the 1.930 billion reported during the previous quarter.
The company attributed the Q4 financial performance to a variety of issues. Some of these issues were the privacy changes made by Apple regarding its operating systems. According to Meta, these privacy changes resulted in the social media company having difficulty targeting and measuring the ads posted on both Facebook and Instagram. A few hours after these financial results were released, Meta’s market value dropped by around $200 billion.
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