What happened
Shares of Meta Platforms (META -0.59%) were lower on Monday, slipping by as much as 4.1%. At the end of the trading day, the stock was still down 2.3%.
The broader market trend was decidedly lower today, which no doubt contributed to the stock's decline, but two pieces of news stood out. Reports suggest that the Meta Platforms' stock performance has employees looking for greener pastures, and a metaverse exchange traded fund (ETF) is shorting the company.
So what
A report in the New York Post on Sunday suggested that Meta Platforms stock price, which has fallen more than 40% from its recent highs, is weighing on employee morale and could lead to high turnover. The stock, which topped out at over $384 per share in early September, ended the day Monday at roughly $211.
Image source: Getty Images.
The decline has left many recent employees with stock options that are under water, making a portion of their compensation package currently worthless. Needham analyst Laura Martin said that for many tech workers, it makes sense to change jobs when they can pick up stock options cheap at another company. "If you're not going to be making any money in your equity options for three years, it is in your interest to leave," Martin said.
To add insult to injury, the Subversive Metaverse ETF, which launched back in January, is investing in anything related to the metaverse -- except Meta Platforms. In fact, the metaverse-focused ETF is actually shorting Meta Platforms, a slap in the face to a company that recently changed its name from Facebook to Meta Platforms to signal its focus on the metaverse.
"Facebook seems to be the antithesis of what actual consumers want their digital futures to look like," Subversive Capital founder Michael Auerbach said. "Mark [Zuckerberg] and his team are not the best custodians of our digital futures."
Now what
Meta was largely pulled down by the market downdraft on Monday. That said, these two factors are symbolic of the ongoing headwinds facing Meta as the company looks to leave behind its somewhat dubious reputation and champion the coming metaverse.
Given its considerable resources, however, I wouldn't count out Meta Platforms. In fact, at this price, it might seem like a bargain five years from now.
