-2.9 billion dollars for Meta – the painful metaverse of Marc Zuckerberg

A metaverse worth gold! – Last, Meta celebrated the opening of its Meta Store, the test space of his “Horizon World” metaverse. However, based on development and research advancing in the field of web3 technologies, the company, formerly known as Facebook, is lamenting a loss of 2.9 billion according to its report for the first quarter of 2022. Let’s decipher it.

Meta’s first quarter results were released on Wednesday, April 27. In this report, the company realizes the loss of $2.9 billion. Insulting it? The metaverse and more specifically Reality Labs.

Reality Labs is a section of Meta that focuses on metaverse development. By significant amounts have been spent for the development of virtual and augmented reality products and services. More specifically, the biggest expense for Reality Labs is the development of the Cambria virtual reality headset. In short, Realty Labs is working on the social space of tomorrow in which we can, for example, work and play.

Company Metaverse Development Costs $2.9 Billion

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Let’s go back a year and compare. In 2021, the company will then record a loss of $1.8 billion in the same quarter. In the same year, the social media giant also recorded an overall loss of approximately $10 billion, of which 4 billion already due to research and development costs. This bad start, however, does not seem to alarm Marc Zuckerberg, leader of Meta. These losses, he said, were even predictable.

Several data in the report point in that direction. First of all, Reality Labs also realizes 695 million turnover in the first quarter of 2022. This figure is made possible, among other things, by the turnover from virtual reality headsets and the meta portal (development of artificial intelligence). Subsequently, the social networking giant posted a turnover of $27.9 billion, up from $26.1 billion in 2021 always in the same quarter.

“We expect total spending for 2022 to be between $87 billion and $92 billion, down from our previous forecast of $90 billion to $95 billion (…) We expect spending growth in 2022 to be primarily driven by the Family of Apps segment, followed by Reality Labs.

Meta announces that it lost $2.9 billion in the first quarter of 2022.
The Metaverse of Meta: Marc Zuckerberg’s Money Pit?

It is clear to the leader that it is not now that the metaverse, Horizon World and the work of Reality Labs will bring him benefits. Rather, it is up to the company to focus on the development. In these statements, Marc Zuckerberg confirms his confidence in the development of a virtual world, social workspace:

“As such, from a financial perspective, our goal is to generate enough revenue growth from Family of Apps in the coming years to fund investment growth in Reality Labs, while increasing our overall profitability.” †

In the stock market, Meta’s shares are gray since there are fewer users on Facebook. The quarterly report did, however, bring some color to the market. resourceful, Meta recently said it is taking nearly 50% of the cost of sales from its future marketplaceenough to refill the company’s coffers.

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