Meta will invest more money in the metaverse

Mark Zuckerberg, the head of Meta, announced his intentions to keep the Metaverse and further funding going, despite heavy losses. Previously, Zuckerberg's company suffered a loss of $22,100,000,000.

Recently, Mark had a conversation with analysts and reported on financial reports. According to them, Meta's losses have increased by 19% over the past year and reached the $22,100,000,000 mark, as previously stated. As for revenue, in the third quarter of 2022, it fell by 4% to $27,700,000,000. Profit suffered quite strongly and decreased by more than 2 times. It decreased by 52% and now stands at $4,400,000,000. As a result of such events, Meta shares lost 19% in value.

A separate division of Meta, responsible for technologies of the metaverse, Reality Labs in 2022 showed a loss of $3,670,000,000 in the third quarter and a loss of $9,400,000,000 for the whole year. This was reported by the director of Reality Labs Dave Vener. The company's revenue fell exactly 2 times and now amounted to $ 284,000,000, and Vener attributes all the failures this year to a decrease in sales of the Quest 2 headset. Dave also reports that Reality Labs operating losses may be even higher in 2023 and will be expressed in annual terms, and already after 2023, the company can gain such investment momentum that will allow it to achieve long-term goals of increasing the company's operating income.

Brent Trill, an analyst at investment bank Jefferies Group, suggests that investors are skeptical about the experimental directions Meta is taking. Instead, they believe that the company could be developing the already time-tested core Meta services.

Mark Zuckerberg gave the following answer to the questions of skeptics:

I just think there's a difference between being experimental and not knowing how good it will end up being. But I believe that a lot of what we are working on in the application family, we are quite sure, will work, and well.

Zuckerberg also cited Instagram's innovation in the form of short videos from the Reels section as examples. In his opinion, such an experiment has become very successful and he sees nothing wrong with trying to develop towards the metaverse.

The owner of Meta also said that he could not give any accurate forecasts regarding the development of experimental directions, but according to him everything is going pretty well. In addition, he urges investors not to rush to conclusions and give their innovations more time, as the project is conceived as a long-term one and, in the end, his idea may well justify itself.

Meta now faces several tasks at once. First, the company is fighting Apple's new privacy policy. Secondly, the Zuckerberg organization has now entered the fray with TikTok after adding the Reels feature to itself. With both Meta tasks, certain means are required to resolve the problems that have arisen, and the company does not have a single solution that could fix all problems in one motion.

The Metaverse, according to Zuckerberg, will allow Meta to get the opportunity not to depend on the decisions of their competitors, but to forge their own path in the digital world. In the end, it may turn out so that when Apple wants to conquer the world of the metaverses, Meta will already reign in this field, with which they will then have to compete. Mark Zuckerberg also wants to show that truly innovative products can only come about when software and hardware are developed by the same company.