Metaverse Losses For Meta Crossed the Figure Of $3.6 Billion In the Third Quarter Of This Year
Meta, a well-known tech player, is even now burning cash via Reality Labs (its branch for development and research related to the Metaverse) with a loss of up to $3.67B posted for this year’s 3rd quarter, mentioning that the respective losses will grow further in the coming year.
Meta Sufferers a Loss of $3.6 Billion in Its Initiatives for the Metaverse
These statistics point out the biggest losses to be experienced by Reality Labs ever in a quarter since 2020’s 4th quarter. In the Q3 of 2020, the business additionally made revenue of nearly $285M for the 3rd quarter, marking the lowermost record within the respective time.
As the business of Reality Labs is going through its continuous quarterly loss for the third time (accumulating to approximately $9.44b up till now in this year), it seems that the losses of Meta on the “metaverse play” in 2022 will be more than those witnessed in 2021. The respective year-on-year losses would potentially heighten as specified by Dave Whener (the CFO of Meta).
He added that the operating losses of Reality Labs will move above to a significant level in the coming year. As per him, after 2023, they are confident to pace the investments of Reality Labs as they can attain their target of advancing the total company operating revenue while looking at the coming time.
Mark Zuckerberg (the CEO of Meta), on the earning call of the platform, remained unmoved by the big investment of the firm in its upcoming computing venue.
In his words, it was the top preference of the firm, and it is a huge undertaking to construct a Metaverse as well as the hardware related to it. He moved on to say that a product requires to be launched in some version in advance of entering mainstream adoption.
The CEO asserted that their endeavors would become historically significant and establish the basis of a wholly unique way to interact with one another with a blend of technology and real life.
A Meta Shareholder Pens an Open Letter to the CEO, Advising to Minimize Metaverse Investments
Meta’s enormous bet on the virtual world thereof has a few investors persuading the company to scale its investment. The founder of Altimeter Capital (an investment platform) and shareholder at Meta, Brad Gerstner, wrote an open letter to Meta CEO. He emphasized that the investment of the venue in the Metaverse space is super-sized and should be minimized.