Facebook and Google grew into tech titans by ignoring Wall Street. Now it could lead to their downfall
Alphabet Inc. and Meta Platforms Inc. become two of the world's most valuable firms by defying Wall Street's worries about spending and huge acquisitions.
Wall Street was upset, particularly when Altimeter Capital founder Brad Gerstner sent a blistering open letter to Zuckerberg, whose company held 2.5 million Meta shares at the end of the second quarter.
However, when economic circumstances deteriorate, mature enterprises have restrictions.
These big firms should halt recruiting and cease investing billions on untested, unpopular technology.
Wall Street may easily find a tech business that disregarded it for years but concluded it needed to cut down.
Meta attempted to reassure investors Wednesday by saying its head count would be "essentially steady" and payroll growth will halt in 2023.