- Meta anticipates significantly higher losses from Reality Labs, which is responsible for developing the metaverse.
- Mark Zuckerberg, CEO of Facebook, said Wednesday that investors who have patience will “end up getting rewarded.”
- Following the announcement of its earnings, Meta’s share price plunged to $104.30 after-hours trading.
Meta could face more pain in its pursuit of the metaverse, as the company projects Losses in 2023 will be “significantly” greater for the unit overseeing its development — but CEO Mark Zuckerberg seems ok with playing the long game.
He encouraged investors to be patient as he said that Meta investors would “end up being rewarded.”
Wall Street was not reassured by this. After the announcement of earnings, Meta’s share price plunged by nearly 20% to $104.30 on Wednesday after-hours. They have fallen almost 70% this year.
Reality Lab, Meta’s unit responsible for overseeing the metaverse activities was reported Losses of $3.67 billionThe following are the recommendations: Third quarter 2022This was the end of Division XII, which was September 30. This was the end of the division’s Total losses since 2021To just below $20 billion
“We anticipate Reality Labs operating loss in 2023 to grow significantly year over year,” David Wehner (CFO of Meta) stated in a press release. Earnings for the third quarter on Wednesday.
However, ZuckerbergWednesday’s earnings conference call revealed that people will talk about the importance and value of the project for decades to come.
I understand that there might be some people who disagree with this investment. However, from what I can see, I believe that this is going be a very important and important thing. It would be a mistake for me to not focus upon any of these areas which I think will be fundamentally important to our future,” Zuckerberg stated during a conference call. transcript.
Zuckerberg reiterated his support for the metaverse in the call, saying that it’s more than just about. VR headsetsIt is the first thing Meta launched, and most people associate it with the project. It’s part of a larger portfolio that includes other initiatives such as a Social meta platform, Zuckerberg added.
He said that it is still an early version of final product and has much to go before it becomes “what we want it to be”.
