- Meta lost USD $2.8 billion in its Metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users. division in second quarter
- Add to a loss of $2.9 in the first quarter of this year
- Reported revenue of $452 million for the division, down from first quarter
Meta Platforms registered a second-quarter loss of $2.81 billion in its Facebook Reality Labs (FRL) , which comprises its augmented and virtual reality operations, according to its earnings report released yesterday. That was slightly lower than its loss of USD $2.96 billion in the first quarter and better than analysts’ estimates of a loss of USD $3.67 billion for the division for the quarter, according to FactSet .
In total, so far this year, the Metaverse division’s year-to-date losses of Meta exceed $5.7 billion.
FRL generated revenue of just $452 million in the second quarter, down from $695 million in the first quarter. That was a small fraction of the $28.4 billion generated in the quarter by the Meta, which includes Facebook, Instagram y WhatsApp.
But even the company said it expected the revenue fromReality Labs were lower in the third quarter compared to the second quarter.
Long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. term
On the company’s earnings call with analysts, CEO Mark Zuckerberg said that the company is more focused on its long-term metaverse than on maximizing short-term revenue from monetization. .“El desarrollo de estas plataformas [metaverso] podría desbloquear cientos de miles de millones, si no billones, en ingresos con el tiempo”, thanks to Zuckerberg.
Meta announced in the fourth quarter of last year that it would release the division’s results to show performance and investments in a group it sees as key to the next generation of online social experiences.
By 2021, Meta reported a $10.2 billion loss on revenue of $2.3 billion for FRL. The company has said it is committed to spending even more on the division over the next few years.
During the company’s first-quarter earnings call, Zuckerberg said the company’s metaverse arm is currently “laying the groundwork for a very successful 2030s”.
Overall, the adjusted quarterly earnings per share of Meta for the second quarter of USD$2.46 fell short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. of analysts’ average estimate of USD$2.54, according to the analysts.FactSet, while its overall revenue of USD $28.8 billion was below estimates of USD $28.9 billion.
The actions of Meta fell nearly 4% to $163.25 in after-market trading yesterday due to the results. Facebook shares are down more than 50% this year.
Facebook changed its name to Meta in October last year to capitalize on the anticipated metaverse trend.
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