Meta has revealed that it is continuing to haemorrhage money to try and make the metaverse a reality. Meta’s Reality Labs division, responsible for its VR and AR ventures, thus an important part of the company’s dreams of building a so-called metaverse, lost the company $10B last year, and over the previous six months dropped nearly $6B more.
You don’t have to be a trader by day to know that’s a whole lot of cash to be funnelling into a single part of any business. But this is Meta, after all, and its combined operations (including Facebook and Instagram) still net it $46.8B in profit last year, and another $16.9B so far in 2022.
Though Meta is facing more scrutiny following its most recent financial results(opens in new tab). For the previous three-month period the company is down by a whopping single percentage point compared to the same period in 2021. Okay, it’s not much, but that’s actually the first time ever that Meta (née Facebook) has suffered a loss in revenue year-on-year.