Meta remains committed to the metaverse
Despite the financial losses caused by its pivot to artificial intelligence, Meta (META) is still fully committed to the metaverse, according to CEO Mark Zuckerberg. The company’s focus on the metaverse has resulted in billions of dollars in losses, with its Facebook Reality Labs division losing $13.7 billion in 2022. However, Zuckerberg stated that the metaverse and AI are overlapping and complementary areas that the company has been working on for many years.
Financial impact of the metaverse
- Meta’s Facebook Reality Labs division lost $13.7 billion on revenue of $2.2 billion in 2022
- This is an increase from a loss of $10.2 billion on revenue of $2.3 billion in 2021
- The metaverse focus has not been profitable for Meta
- Mark Zuckerberg acknowledges the long-term and multi-faceted nature of the metaverse roadmap
- Meta’s investments in the metaverse have a long-term time horizon for evaluating returns
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!
Earnings and user growth
Meta reported a net income of $7.79 billion for the fiscal second quarter, with a revenue increase of 11% to $32 billion. Additionally, daily active users for Facebook and Meta’s apps saw a 5% and 7% increase respectively. However, Meta’s Threads app, which aimed to replace Twitter, experienced a 60% drop in active users since its launch week.
Meta’s stock performance
Meta’s stock closed over 1% higher at $294.47 and continued to rise in after-hours trading, reaching nearly $319.
Hot Take
Despite the financial losses and challenges, Meta’s commitment to the metaverse shows its belief in the future potential of this technology. While there are risks and uncertainties, the company’s long-term vision and investments indicate a strong belief in the direction the world is heading towards.
