Big Short shorts Zuckerberg: Big short Michael Burry says Facebook is in big trouble

Big short sage Michael burry nudged fun at Facebook parent Meta’s trouble, he was comparing the metaverse to Coca-Cola’s infamous blunder.

Meta-verse owner mark Zuckerberg has faced criticism as his company invests billions of dollars into meta-verse technology.

Meanwhile, there is a sliding increase in the shortage of Facebook users. And Facebook’s parent stock is in serious difficulty this year. And the flagship of the platform Is diminishing based on its users.

Big Short shorts Zuckerberg: Big short Michael Burry says Facebook is in big trouble

How does Metaverse relate to Coke’s problem?

Burry tweeted on Saturday, “Seems Meta has a New Coke problem.”

Burry gave the reference of coca cola’s biggest blunders and the company’s notorious decision in 1985. Coca-Cola company ditch its traditional flavor in favor of a new recipe and named it “NEW COKE”.

The decision is too bad and it triggered a severe uproar that Coca-Cola went back to its old recipe. In the 2021 Blog post company itself mentioned the saga as one of the “Most memorable marketing blunders ever.”

Burry’s tweet suggests, in his views Meta’s decision to shift focus away from the social media platforms that fueled its dominance which has a similar magnitude.

How does Metaverse got criticized?

Burry has become famous after his betting against the US housing market ahead of the Great Recession was chronicled in the 2015 film “The Big Short.” The investor usually tweets about his decision on major companies.

Burry’s Scion Asset Management held stock in Meta recently this year. Meanwhile, he sold his position in Zuckerberg’s firm during the second quarter including all of its other holdings. In August, the hedge fund disclosed it in SEC filing.

Mark Zuckerberg’s detractors and critics are growing day by day, there are many platforms, the financial world, and investors who are behaving mercilessly with meta-platform.

There is a down in Meta shares of 62.3% since January, reflecting approx. $570 billion decline in market value. Adding to this, His fellow billionaires Elon musk and Mark Cuban mock him.

Even Elon Musk gave him the nickname “Zuck the Fourteenth”- it is an obvious reference to the French king Louis XIV, famous for his hubris and excesses. 

How does Mark Zuckerberg’s loss billion

Well, Mark Zuckerberg’s theory work on all the critics. The chief executive officer has imagined the Metaverse as the future of his company, which has Facebook, WhatsApp, and Instagram. Metaverse is a great immersive world where we can live a parallel life with the help of avatars.

However, to clear any remaining doubts, Zuckerberg changed the name of his company from Facebook to Meta Platforms. He submerges reality Labs, this division develops the metaverse within Meta Platforms, and he has spent billions of dollars on it.

Till the date of June 30, approx. $60 billion had been spent on his vision for a mediocre result. Reality Lab talked about the operating loss of $2.81 billion in the second quarter, and in the first half of 2022 totaled $5.8 billion. In the year 2021, they had a loss of $10.2 billion.

According to many people, Metaverse is Zuckerberg’s biggest mistake. Investors are starting to lose patience and mark continues to ask for patience.

But for Michael Burry, there is no doubt that the Meta will become the new coke.