meta’s reality lab was hit hard financially in the third quarter, with losses staggering over $3.7 billion! Mark Zuckerberg’s ambitious plans to create the metaverse clearly cost a lot. But Meta’s CEO seems confident that these investments will ultimately pay off big.
It’s been a year since Mark Zuckerberg took the bold step of bringing Facebook into the digital world. With billions of dollars invested and his business restructured around his Web3, he is committed to making Meta not only relevant but essential in a rapidly changing global economy. It’s clear that you are serious about it.
Meanwhile, Facebook, or Meta (META) stock, has fallen more than 60%. Of course, this isn’t due to the switch to the metaverse, but it will be interesting to see how it plays out with inflation soaring and investors keeping an eye on costs.
Mark Zuckerberg remains bullish on the metaverse
Some investors have argued that Meta should hold the purse strings for its Metaverse project, but Zuckerberg argues such a move would be a “mistake.”
“A lot of people might be against this investment,” Zuckerberg said. I think it’s a mistake.The future.’
Meta’s CEO also confirmed that he expects losses to widen in 2023, but hopes the investment will pay off.
“We expect Reality Labs’ operating loss in 2023 to increase significantly year-on-year. We want to adjust the pace of investment.”
Facebook and Instagram continue to grow
Meta may be eating money, but the company’s two main applications, Facebook and Instagram, continue to grow.
Facebook remains one of the most popular social media networks in the world, with approximately 2 billion daily active users and 3 billion monthly active users. Even more impressive is his 50% increase in reel views in just six months on both Facebook and Instagram.
Meta’s WhatsApp has also grown exponentially since 2014. At the time, the text messaging app had around 430 million users, and by 2022, he will have over 2 billion.
This shows that their appetite for Web2 applications is equally strong, and as Meta’s Metaverse unfolds, Facebook, Instagram, and WhatsApp are sure to migrate to it.
Conclusion
With Reality Labs pouring big bucks into Meta, many investors are starting to wonder if Zuck going all-in on the Metaverse was a smart move.
But prices have fallen for all tech stocks, so we can’t just blame Meta’s Web3 investment. He created his Facebook which made him one of the biggest brands in the world. So in the long run, it took a brave man to take on Mark Zuckerberg.
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