Meta, formerly known as Facebook, is still committed to its metaverse ambitions, according to CEO Mark Zuckerberg. Despite recent setbacks and losses incurred by its Reality Labs division, which develops virtual- and augmented-reality technologies, Zuckerberg reiterated the company’s focus on the metaverse during a recent earnings call. He described it as a “major technology wave” alongside artificial intelligence and emphasized that reports of Meta moving away from its metaverse vision were inaccurate.
The metaverse is a virtual world that allows users to interact with one another through digital technologies. The concept has gained attention in recent years, with companies like Meta, Roblox, and Epic Games investing heavily in developing their own metaverse offerings. However, the metaverse has yet to gain much traction, and Meta has been forced to lay off tens of thousands of employees after hiring aggressively during the pandemic. Last year, Meta reported its first-ever drop in revenue, and its shares have dropped more than 44% from an all-time high in 2021.
Despite these setbacks, Meta is still committed to its metaverse ambitions, with Zuckerberg stating that it is a “long-term project.” During the call, he noted some metaverse-adjacent milestones, such as over a billion Meta avatars being created and over half of Quest daily actives spending more than an hour using their device.
While the Reality Labs division has been losing money, Meta’s “Family of Apps” business, which includes Facebook, Instagram, Messenger, and WhatsApp, has been performing well. The company beat analysts’ estimates when it reported $28.6 billion in revenue for the fiscal quarter ending in March. This is due to cost-cutting measures, a drive towards greater efficiency, and steady growth in its established businesses.
If Meta were to pull back from its metaverse ambitions, it would likely be welcome news for many shareholders, as the bleeding is set to continue throughout the year, with this year’s losses expected to top 2022’s. However, Meta’s commitment to the metaverse suggests that the company sees it as a long-term investment that will eventually pay off.
In conclusion, Meta is still committed to its metaverse ambitions, despite recent setbacks and losses. While the Reality Labs division has been struggling, Meta’s established businesses, such as Facebook and Instagram, have been performing well. Zuckerberg’s comments suggest that the company sees the metaverse as a long-term investment that will eventually pay off, even if it takes time to gain traction.
