Metaverse Division Of Meta Continues To Lose Money In Q3/2022

In the most recent year, Meta, the Facebook parent company, reported a loss of $9.4 billion for metaverse development.

According to its financial report issued Wednesday, Meta Platforms recorded third-quarter sales of only $285 million in its Facebook Reality Labs (FRL) segment, which includes its augmented and virtual reality activities. This fell far short of the expert forecast of $406 million and was down from $452 million in the second quarter.

Overall, FRL lost $3.7 billion in the third quarter, up from $2.8 billion in the previous quarter. Thus, from announcing the change of name to Meta to reflect the strategy of developing the metaverse virtual universe, billionaire Mark Zuckerberg’s technology group has reported a loss of $ 9.4 billion for Reality Labs alone.

Investors are not very optimistic about Facebook’s strategy, as shown by the group’s capitalization has dropped from a peak of $1 trillion at the end of last year to less than $350 billion.

CEO Mark Zuckerberg‘s fortune also decreased from more than $120 billion to less than $50 billion. Many people think that Zuckerberg is too far away from reality when he burns heavily for the metaverse, while the product obtained is extremely sketchy and unconvincing.

Speaking during the financial statement meeting, CEO Mark Zuckerberg stated that he remained optimistic about the prospects of the metaverse but acknowledged mixed opinions about the current direction of the company. He thinks it would be a mistake not to focus on the metaverse now because it will have a huge impact in the future.

The company stock price ended the trading session on October 26 with a red candle, with a fluctuation range of up to 20%.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.