Mark Zuckerberg says his company will all in metaverse last year. On Wednesday, he showed how much he had to spend on it.
Meta, the company Zuckerberg founded as Facebook, says its Reality Labs division, which makes virtual reality glasses, smart glasses and other unreleased products, has lost more than 10 years. billion USD in 2021 when building a business. . Those products are key to Zuckerberg’s vision of metaversea next generation of internet where people will share virtual worlds and experiences across different software and hardware platforms.
This is the first time that Meta has revealed the results of its hardware division. The company hasn’t broken those numbers in the past because products like virtual reality headsets are a small part of the company’s overall business, which relies on social media and technical advertising. number. Invest $10 billion in metaverse 5 times more than Facebook paid to buy Oculus VR business in 2014 and 10 times more it pays to buy Instagram in 2012.
The spending pulled the company’s quarterly profit down 8% to $10.3 billion from a year earlier. Shares of Meta fell about 22% in after-hours trading.
“We had a solid quarter as people turned to our products to stay connected and businesses continued to use our services to grow,” Zuckerberg said in a statement. An announcement. “I am encouraged by the progress we have made over the past year in several key growth areas such as Reels, commerce and virtual reality, and we will continue to invest in these areas. and other key priorities in 2022 as we work to build the metaverse. ”
The revelations illustrate the extent to which Meta is pushing in a new direction. In October, Zuckerberg announced that he plans to spend heavily on the metaverse in the coming years, a major change for a company that has been mired in endless social media controversies. to misinformation and hate speech. Meta has since started scanning internal switchrestructure themselves and motivate employees to participate in virtual and augmented reality teams.
Meta is in an all-out race against other tech giants to assert foundation in metaverse theory. Last month, when Microsoft says it is buying video game maker Activision Blizzard for nearly $70 billion, the software maker cited the deal as a building block for the metaverse, even though Activision doesn’t manufacture virtual reality games. Google has also been researching metaverse-related technology for years, and Apple has its own devices.
Funding for Meta’s expansion into the metaverse is its core advertising business, which continues to grow. The company said revenue jumped 20% in the three months ended December, to $33.7 billion, year-over-year. Wall Street analysts had predicted a profit of $10.9 billion on revenue of $33.4 billion.
The company also announced plans to change its stock ticker so that its stock will trade under the symbol META on the Nasdaq Stock Exchange instead of FB.
https://www.nytimes.com/2022/02/02/technology/meta-facebook-earnings-metaverse.html Meta spent $10 billion on Metaverse in 2021, reducing profits