Meta’s Q2 Metaverse Plunge: $3.7B in the Red
Meta, formerly known as Facebook, remains committed to its metaverse ambitions despite its division focused on that area consistently reporting significant financial losses.
In the second quarter, Meta’s Reality Labs unit, which encompasses augmented reality, virtual reality, and the metaverse software platform, recorded a net loss of approximately $3.7 billion, according to the company’s recent disclosure.
However, such substantial financial losses have become commonplace in recent quarters. For instance, Reality Labs experienced a net loss of $13.7 billion in 2022 and nearly $4 billion during the first three months of 2023.
During Meta’s earnings call, CEO Mark Zuckerberg emphasized the long-term nature of their bet on the metaverse, acknowledging that many investors might be uneasy about this unconventional approach. He shared his belief that, eventually, smart glasses will be as widespread as regular eyeglasses, and everyday activities such as watching TV and using computers will evolve into more immersive virtual reality experiences.
Despite the ongoing operating losses in Reality Labs, Meta intends to continue investing significantly in augmented reality, virtual reality, and their ecosystem, with plans to launch the Meta Quest 3 virtual reality headset in the near future.
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Meta is also set to focus on promising opportunities such as artificial intelligence (AI) and the metaverse, leading to expected expense growth in 2024.
Meta’s Chief Financial Officer, Susan Li, stressed that Reality Labs has an ambitious and multi-faceted roadmap that necessitates continuous research and development investments, emphasizing their long-term approach to evaluating returns on these investments.
On a positive note, Meta’s “Family of Apps” segment, which includes platforms like Facebook, Instagram, Messenger, and WhatsApp, continues to perform well, generating a substantial income of nearly $13.1 billion in the second quarter, effectively offsetting the losses incurred by the Reality Labs division.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
