Zuckerberg still believes in the metaverse, despite the stock slump
The spending, through Meta’s newly formed Reality Labs division, contributed to an 8% decline in the quarterly profit of the Menlo Park giant, according to the company’s accounts, with a loss of more than $ 10 billion. The social media giant has warned investors of future “headwinds resulting from both increased competition for people’s time and a shift in engagement.”
Among Meta’s web3 efforts, CEO Mark Zuckerberg said that the company’s “path to follow is not perfectly defined”, adding that he is “confident” in the unprecedented investment in the nascent space. The escalating costs, however, may be just beginning, as analysts predict the social media giant will spend at least $ 60 billion to realize its complete vision of the metaverse.
In the company’s first earnings report from the rebranding from Facebook to Meta, Zuckerberg also said the company is planning to release a “high-end” virtual reality headset later this year. Meta reported $ 2.3 billion in revenue from Reality Labs in 2021. Daily active users, a key growth metric for social media companies, fell in line with analysts’ expectations of 1.95 billion. stopping at 1.93 billion.
Zuckerberg previously said the company’s spending on space would focus on augmented and virtual reality efforts. Facebook and Instagram have also both recently been linked to non-fungible token integrations (NFTs). Two sources familiar with the matter told the Financial Times that Meta has been considering launching an NFT market, as well as allowing users to display NFTs on their profiles. Shares in the company plummeted more than 20% after hours to around $ 249 per share. It is down about 4% since the beginning of the year.
COMMENT
In German Zuckerberg means Sugar Mountain. One must be consistent with one’s name!
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