Facebook’s shift to Meta turns into an economic disaster with $5.77 billion in losses in 2022

During the presentation of the company’s quarterly results, Mark Zuckerberg said that this division, which recorded heavy losses, but could one day be worth Billions.

Meta’s titular division just suffered another blow

The social media giant revealed that its metaverse-specific division suffered losses of $2.81 billion this quarter. Since the beginning of the year, the losses of the division amount to the astronomical sum of 5.77 billion dollars.

The division, Facebook Reality Labs (FRL), is separate from Facebook, Instagram, Messenger and Whatsapp, and focuses on building the hardware, software and content central to pushing Meta into the metaverse.

In its second quarter 2022 earnings report, FRL generated $452 million in revenue during the period, down 35% from the prior quarter. Last year, the division posted a staggering annual loss of $10.2 billion. It is currently on track to surpass that figure in 2022.

It is obviously a highly esteemed company over the next few years“, conceded the CEO of Meta, Mark Zuckerberg. “But as the Metaverse grows in importance in every part of our way of life… I’m sure we’ll be glad we played a significant role in building it.

When Mark Zuckerberg changed Facebook’s name to Meta last fall, he shifted the entire company’s ethos to dominating the metaverse: a future, immersive version of the internet in which digital avatars will navigate and whose Mark Zuckerberg is betting that it will become central to commerce, work, entertainment and social interaction.

Although the metaverse, which has cost the company billions of dollars, has yet to bear fruit, Mark Zuckerberg has tried to convince shareholders that it is a wise long-term strategy.

By contributing to the development of these platforms, we will have the freedom to create these experiences in the way that we and the entire industry believe will be the best, rather than being limited by the constraints that competitors impose on ussaid Zuckerberg. “I am even more convinced now that the development of these platforms will unlock hundreds of billions of dollars, if not trillions, over time.

The company’s overall revenue improved just over 3% this quarter to $28.8 billion. Despite this, after the release of the second quarter earnings report, the company’s stock fell some 4% to $163.81.

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