Within the Doomsday situation, the place Fb continues to spend cash on R&D and make investments closely within the Metaverse, with no payoff in increased progress or longer enterprise life from these investments, the worth of fairness that I acquire is $258.6 billion. Doing the valuation with the Metaverse revenues and bills faraway from the combination yields $330 billion, suggesting that treating the complete Metaverse funding as wasted expenditure reduces Fb’s worth by roughly $71 billion.
The market capitalization of Fb on October 29, 2022 was $247 billion, under the Doomsday situation worth, indicating that traders had been, actually, treating the $100 billion to be invested within the Metaverse as a wasted expense, a remarkably cynical and pessimistic tackle a firm that has had a historical past of delivering income. The market capitalization has risen to $311 billion as of November 15, 2022, and whereas that implies a extra optimistic perspective, that worth nonetheless displays a presumption that the Metaverse funding will destroy about $18.9 billion of Fb’s worth.
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