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Snacks / Monday, October 17, 2022

The metaverse doesn’t have legs… literally. Meta has spent $15B+ on its metaverse, but Horizon Worlds had only about 300K users as of February, and its avatars still don’t have legs. Last week Meta dropped a leg teaser — but admitted it was made using motion capture (read: fake digi-legs). Meta also launched a $1.5K VR headset and a Microsoft remote-work partnership (think: metaverse Excel). But meta-investments are expected to lose $$ for years. Meta’s cutting staff as growth slows (a first), and shares are down 60%+ this year. Zuck put it best: “Legs are hard.”

The gig is up… On Tuesday the US Labor Department announced a proposal that could classify millions of gig workers (think: delivery drivers, janitors, and home-care aides) as employees rather than independent contractors. The final rule is expected next year and would likely boost gig workers’ pay and benefits, while hurting the gig-dependent biz models of companies like Uber, Lyft, and DoorDash. And unlike California’s AB5 bill, this rule would have consequences nationwide.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.