Loup Ventures analyst Gene Munster said Monday that leaked documents from Meta Platforms (NASDAQ:META) showing slower-than-projected growth of its key metaverse platform represent a “very clear disappointment.”
In an interview with CNBC, the Loup Ventures founder and managing partner also suggested that the lack of dramatic consumer demand for the metaverse concept put the timeline for the overall technology in doubt.
“[The news] begs the question, which is how long is the metaverse really away here? How far are we away from this actually taking off?” he asked.
Citing internal documents, the Wall Street Journal over the weekend reported that META has had fewer than 200K users sign up for its Horizon Worlds offering, the centerpiece of its metaverse development.
The company had targeted a figure of 500K monthly active users. With the current number about two-fifths of that total, the firm has lowered its year-end goal to 280K.
Munster said he would have hoped the monthly active user total would be closer to 1M at this point and described the core issue as “a chicken and an egg problem.” He noted that disappointing adoption rates are tied to the expensive gear required to use the technology.
Specifically, he noted that the cheapest headset that META has to access the metaverse comes in at $400. Munster argued that the company needed to get that figure down to the $100 range.
Overall, Munster remained upbeat on META’s long-term future. He contended that betting on the technology was effectively a gamble that there will be a user-engagement platform in the future other than mobile devices.
“I’m still positive on where this company can go and more positive on the long-term potential of the metaverse,” he said. “I’m still optimistic that we’re going to find a way forward and this will be something.”
The Loup Ventures managing partner noted that while META has become the most prominent symbol of the development of the metaverse, it is far from the only big-name tech firm making a sizable investment in the technology. Specifically, he noted pushes from the likes of Apple (AAPL), Microsoft (MSFT), Google (GOOG) (GOOGL) and Samsung.
For another long-term look at Meta’s prospects, Seeking Alpha contributor Dilantha De Silva says the company’s stock will be “nowhere near” its current levels in five years.
Original post: https://seekingalpha.com/news/3891846-disappointing-data-about-meta-creates-doubt-on-metaverse-timeline-loup-ventures-gene-munster