Meta’s Reality Labs division posted a whopping $3.7 billion loss in the third quarter of this year. This loss comes to question the dream of Zuckerberg and Meta in the Metaverse.
Meta doesn’t want to give up on her Metaverse dreams
Reality Labs is the department of the Meta company that deals with developing the Metaverse technology of which Mark Zuckerberg dreams. This division officially declared to have suffered a significant loss of more than 3.7 billion dollars during the third quarter of the year 2022.
This loss comes on top of those already recorded by this same department during the two previous quarters.
Indeed, in the first and second quarters of 2022, Reality Labs had already lost more than $5.7 billion. In sum, Reality Labs lost US$9.4 billion in the first three quarters of 2022.
In addition, the profits of the Meta company are in free fall with a drop of more than 47% in the income drawn from its mainly advertising activity.
As for the employees, they seem only slightly motivated by the idea of working in Mark Zuckerberg’s Metaverse even though they are supposed to design it.
All of this bad news caused the Meta stock price to plummet and it fell dramatically until reaching a Meta stock price of $94 on 1is November 2022. This is a 71% decline over the last 12 months. You will have understood, nothing is going well at Meta except in the spirit of Mark Zuckerberg.
Indeed, the CEO of Meta and founder of the world famous social network Facebook said that he and his teams continue to work hard to design the future of social networks with the metaverse; notably through the design of new avatars and even more immersive virtual spaces.
Brad Gerstner made recommendations to Mark Zuckerberg in an open letter
Following all these losses recorded by Meta in the Metaverse, one of the investors, Brad Gerstner, the CEO of Altimeter Capital sent an open letter to Mark Zuckerberg.
In his open letter that has gone around the world, the CEO of Altimeter Capital asked the CEO of Meta and his entire board to take strong action.
Among other recommendations, the CEO of Altimeter Capital is asking the company to cut staff costs by 20%.
He also recommended to Mark Zuckerberg and his team to reduce the annual investment expenditure of 5 billion dollars on this project, at the risk that it ends up in the drawers. Is this the end of the metaverse of Meta?
The answer is no as things stand. Indeed, it is not uncommon to see companies consuming a lot of resources and finding themselves in a loss-making situation for many months or even years before becoming profitable.
We can think in particular of the company Uber, which specializes in the sector of meal delivery at home or at work.
See as well : MonkeyLeague the new football game on the blockchain