Monday, December 5, 2022
HomeMetaverseMetaverse Losses Crossed Over $3.6 Billion

Metaverse Losses Crossed Over $3.6 Billion

Meta, the company formerly known as Facebook, continued losing money via its Metaverse research and development subsidiary, Reality Labs, and the company reported a loss of $3.67 billion for the third quarter of 2022. The company also said that these losses would become much more severe in the following years.

Earnings for the third quarter of 2022 were reported by Reality Labs on October 26. These results represent the company’s largest-ever quarterly losses, based on results dating back to the fourth quarter of 2020. The company also made $285 million in sales during the quarter, which was the lowest amount it has ever made during this time period.

With its Reality Labs business posting its third consecutive quarterly loss, totaling $9.44 billion so far in 2022, Meta is planning to beat its 2021 losses on its metaverse play, which saw just over $10 billion in losses last year.

On the firm’s earnings call, Mark Zuckerberg, the CEO of Meta, demonstrated that he was unfazed by the significant investment that the business had made in what he referred to as the “next computing platform.” He informed the investors that the construction of a Metaverse and the hardware that is associated with it is “a big undertaking” and that it is the company’s top priority.

The firm reported overall revenue of $27.71 billion for the quarter, which was somewhat higher than the revenue estimates provided by Wall Street experts. However, the company only reported profits per share of $1.64, which was lower than the projection of $1.88 per share.

According to Yahoo Finance, the stock price of Meta has dropped by more than 19.5% in after-hours trading as of the time of this writing. Furthermore, the value of the company’s shares has decreased by more than 61.5% since the beginning of 2022. Some people are worried about the possibilities for the future of the Metaverse now that Zuckerberg is in charge. Frances Haugen, a whistleblower for Meta, said in April that the company’s virtual world would replicate “all the harms of Facebook” if it does not commit to transparency.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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