A metaverse that is worth gold! – Recently, Meta celebrated the opening of its Meta Store, the test space of the “Horizon World” metaverse. With the development and research advancing in web technologies3, the company formerly known as Facebook, however, regrets a loss of 2.9 billion according to its report for the first quarter of 2022. Let’s decipher.
Meta’s first quarter results were published on Wednesday 27 April. In this report, the company realizes the $ 2.9 billion loss. The offense? The metaverse and more specifically the Reality Labs.
Reality Labs is a Meta section focused on metaverse development. Of the huge sums have been spent for the development of virtual and augmented reality products and services. The biggest expense for Reality Labs is more specifically the development of the Cambria virtual reality headset. In short, Realty Labs is working on the social space of tomorrow where we can, for example, work and play.
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Let’s go back a year and compare. In 2021, the company therefore records a loss of 1.8 billion dollars in the same quarter. In the same year, the social media giant also recorded an overall loss of around 10 billion dollars, of which 4 billion already due to costs for research and development. However, this bad start does not seem to worry Marc Zuckerberg, leader of Meta. These losses were even, according to him, foreseeable.
Several data in the report point in this direction. First, Reality Labs also recorded 695 million in revenues in the first quarter of 2022. This figure is enabled among other things thanks to the revenues of the virtual reality headsets and the Meta Portal (development of artificial intelligence). Then, the social network giant recorded a turnover of $ 27.9 billion, up from $ 26.1 billion in 2021 always in the same neighborhood.
“We expect total spending by 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 driven mainly from the Family of Apps segment, followed by Reality Laboratories. “
For the leader it is obvious that it is not time that the metaverse, Horizon World and the work of Reality Labs will benefit him. Rather, it is up to the company to bet on development. In these statements Marc Zuckerberg confirms his confidence in the development of a virtual world, the social workspace:
“As such, over the next few years, our financial goal is to generate sufficient growth in operating revenue from Family of Apps to fund growth in Reality Labs investments, while increasing our overall profitability.” “
On the stock market, Meta’s shares have been gray as there have been fewer users on Facebook. The quarterly report, however, brought some color back to the market. resourceful, Meta recently said it takes nearly 50% of the sales commissions from its future marketenough to refill the company’s coffers.
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