Jim Breyer, one of Facebook’s early investors, believes so Target isn’t cutting costs fast enough as the company plans to report its third straight quarterly decline in sales.
“My view is there’s going to be a big recovery over the next 24 months,” the Breyer Capital founder said during an interview with CNBC on Thursday. “But they are going to be under a lot of pressure for the next 12 months and in my humble opinion they are not cutting costs fast enough.”
“Metaverse is years away,” Breyer added of the company’s 2021 name change and subsequent multibillion-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, despite many investors urging the company to refocused on its core online advertising business.
Breyer seems optimistic that VR will see a resurgence this year, though overall sales of VR headsets shrunken last year.
“Virtual reality is going to be a very big thing this Christmas,” Breyer said. “It will be Apple, it will be Google, it will be Sony as well as Oculus, but look forward to the big vacation in the world of virtual reality.”
As for Chinese tech giant ByteDance and its Facebook-competing social video service TikTok, Breyer said he has a “very long-term interest in TikTok” and is interested in ByteDance’s big investment in artificial intelligence.
Still, Breyer seemed concerned about whether TikTok could potentially be banned in the US, as many state governments and universities have banned the app over concerns about user data potentially being accessed by the Chinese government.
“My hometown of Austin, Texas. Just at the University of Texas.” forbidden Tiktok from all devices,” Breyer said, referring to the December decision by university officials. “But certainly, questions about data and where the data resides are not going to go away.”