Meta’s Metaverse Segment Experienced A $2.8 Billion Loss In Q2 2022
Meta Metaverse reported losses of $2.8 billion for its metaverse-focused division, Reality Labs, as the firm missed on earnings and revenue for the second quarter.
Following earnings on Wednesday, the tech giant’s shares initially fell as much as 5% in after-hours trading before trimming losses. As of this writing, the shares were still down slightly over 1%.
Reality Labs, the company’s metaverse branch, posted fourth-quarter earnings of $452 million, a decrease from $695 million in the first quarter. In the first quarter of 2022, the division previously reported a $2.9 billion deficit.
With total sales for the second quarter of 2022 coming in at $28.82 billion, below projections of $28.9 billion for the quarter, the firm underperformed overall on Wednesday. Earnings per share were $2.46, which was less than the $2.54 expectation.
The Federal Trade Commission (FTC) launched a lawsuit against Facebook on Wednesday, claiming that the company is attempting to dominate the whole metaverse sector, which dealt fresh blows to the metaverse.
Meta and Apple to lock horns in the metaverse?
The entire globe seems to be in the race to the metaverse. South Korea, Dubai, and Japan seemed to be leading this race as of now. Zuckerberg, however, believes that Apple could pose as a prominent completion to Meta. He believes that both the companies were in a “very deep, philosophical competition.”
Zuckerberg further told his employees:
“This is a competition of philosophies and ideas, where they believe that by doing everything themselves and tightly integrating that they build a better consumer experience. And we believe that there is a lot to be done in specialization across different companies, and [that] will allow a much larger ecosystem to exist.”
According to reports, Apple has been developing both VR and AR models. Zuckerberg, though, is of the opinion that the metaverse’s future is still uncertain. So it appears that their current top priority is research.
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