The early Facebook investor says Zuckerberg isn’t cutting costs fast enough

Jim Breyer, one of Facebook’s early investors, believes so Meta isn’t cutting costs fast enough as the company is set to report its third straight quarterly revenue decline.

“There’s going to be a big upside in the next 24 months, in my opinion,” the Breyer Capital founder said in an interview with CNBC on Thursday. “But they’re going to be under a lot of pressure over the next 12 months and not cutting costs fast enough in my humble opinion.”

“The Metaverse is years away,” Breyer added, in reference to the company’s 2021 name change and subsequent multi-billion dollar investment in virtual reality and augmented reality technologies. Founder and CEO Mark Zuckerberg believes the social media giant needs to spend billions of dollars on VR and AR to help develop what could be the next frontier for personal computing, though many investors are pushing the company to divest to focus on its core business of online advertising again.

Breyer seems optimistic that VR will take off this year, despite overall VR headset sales falling over the past year.

“Virtual reality is going to be a very big thing this Christmas break,” Breyer said. “It will be Apple, it will be Google, it will be both Sony and Oculus, but look out for a big vacation in the virtual reality world.”

Referring to Chinese tech giant ByteDance and its Facebook competitor, social video service TikTok, Breyer said he has a “very long-term interest in TikTok” and is excited by ByteDance’s heavy investment in artificial intelligence.

Still, Breyer seemed concerned about the possibility of TikTok being banned in the US, as numerous state governments and universities have banned use of the app over concerns about the Chinese government’s potential access to user data.

“My hometown Austin, Texas. At the University of Texas, they just banned Tiktok from all devices,” Breyer said, referring to a December decision by university officials. “But sure, the data issues and where the data is are not going away.”

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