- Meta revealed losses worth $3.7 billion in its latest Q3 report
- Despite the plugging metrics and expenses, Meta’s CEO Mark Zuckerberg says he’s positive that the firm will “emerge stronger than ever in 2023.”
- Meta has till now reported $15 billion worth of losses in trying to establish itself as a leading metaverse hub.
Meta’s recent Q3 report has made shocking revelations, disclosing a loss of nearly $3.7 billion. The losses are generally tied to its latest metaversal pursuits, which have failed to gain momentum in the mainstream market.
Meta Reports Losses Worth $3.7 Billion In Q3
Meta had recently unveiled its Reality Lab Division which was responsible for leading its augmented and virtual reality operations. Per its latest Q3 report, the division is raking in losses as Meta’s metaversal pursuits fail to tempt new users.
The report demonstrates how the firm is losing its bet against the metaverse, a venture that has led the company to lose $3.7 billion in the third quarter of 2023. According to the latest report, Meta has lost nearly $9.43 billion to date while trying to spearhead its Metaverse-related projects.
The company had recently launched Meta Oculus virtual reality along with Horizon World, a metaverse platform that received harsh criticism for its poor graphics and comical designs. The venture was reportedly launched after a hefty $177 billion investment, which ultimately failed to tempt mainstream users.
Mark Zuckerberg’s net worth is down $104 billion from its all-time high.
Despite Meta’s poor performance in Q3, 2022, its CEO, Mark Zuckerberg, seems positive about the company’s future.
“While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company. ” Zuckerberg later adds.
Meta Reports A Cumulative Loss Of $15 Billion. Where Did The Money Go And Where Was It Spent?
Meta has reportedly spent $15 billion in its bid to establish itself as a leading Metaverse hub. However, the firm is yet to share a detailed account of its expenses.
Several crypto experts have weighed in with their opinions, sharing how Meta’s obsession with the Metaverse is proving detrimental to the firm.
“The problem is that they spend the money, but the transparency with investors has been a disaster. This continues to be a risky bet by Zuckerberg and the team because, for now, they’re betting money on the future while they continue to have massive headwinds on their core business, “Dan Ives, a tech analyst at Wedbush Securities, told Business Insider
Meta just had its worst revenue decline in its history.
Get out of the metaverse, and get back to the real world. pic.twitter.com/yBM40DmkD7
Mark Zgutowicz, an analyst at Benchmark, tried to break down Meta’s expenses and added how the firm may be redirecting 60–70% of its funds towards the research and development aspect of Meta’s Reality Lab division.
“There is no real metaverse, at least from a scalable standpoint, until we all can wear glasses that don’t make us look like an alien or something.” It’s hard for them to go out and acquire other unique software companies because they’re so tied down with regulatory burdens that they have to stay within their house and build something organically. Where the transparency could be better is how and when they expect to get a return on this spend.” Zgutowicz shared
With tanking metrics and statistics, several users and analysts are still harbouring hope for Meta’s web3 venture, claiming that the firm has the potential to transform the Metaverse domain.
“When Facebook first bought Instagram, people laughed at him and said he was crazy. They said, “This guy is just going to throw all this money away,’ and Instagram turned out to be one of the best acquisitions ever. Not [just] for Facebook — ever, in the world of acquisitions,” Ivan Feinseth, a tech analyst at Tigress Financial Partners, told Business Insider.
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