Facebook parent Meta lost $3.7 billion on its virtual reality division, Reality Labs, according to its earning report released Wednesday. Thus, from the time Facebook announced to change its name to Meta, reflecting the company’s ambitions in Metaverse, Mark Zuckerberg’s tech company has reported a loss of $9.4 billion for Reality Labs alone.
In the last quarter, Meta said Reality Labs brought in only $285 million in revenue, down from $558 million in the same period last year. However, Meta’s overall revenue, which includes revenues from Facebook, Instagram, Snapchat and others, hit $27.7 billion, higher than the $27.4 billion predicted.
Investors are not very optimistic about Meta’s metaverse strategy, as shown by the group’s capitalization has dropped from a peak of $1 trillion at the end of last year to less than 350 billion at the present time. CEO Mark Zuckerberg’s fortune also decreased from more than 120 billion USD to less than 50 billion USD. Many argue that Zuckerberg was unrealistic when he spent a lot of money on the metaverse, while the product obtained is extremely sketchy and unconvincing.
On the company’s conference call Wednesday, CEO Mark Zuckerberg stated that he remains optimistic about the future of the metaverse, but also acknowledged mixed opinions about the current direction of the company. He thinks it would be a “mistake” not to focus on the metaverse now because it will have a huge impact in the future.
Despite starting the day with an impressive increase of 8%, Meta shares ended the session on October 26 with a red candle, the fluctuation range was up to 20%. Besides Metaverse, Meta also focuses on crypto space by allowing users to set NFT as their avatars on Facebook and Instagram.
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