- Meta’s Reality Labs division lost $4.28 billion in the fourth quarter, increasing its aggregate to $13.72 billion.
- Meta’s ambition Metaverse innovations are housed in the corporation, which CEO Mark Zuckerberg has stated will be the firm’s future.
- In late 2021, Facebook changed its brand name to Meta, although the corporation still depends largely on advertising for the majority of its income.
Mark Zuckerberg‘s vision of the coming years in the virtual world is likely to cost investors a fortune.
Meta reported income after the bell on Wednesday, saying its Reality Labs division, which houses the company’s virtual reality innovations and initiatives, lost $4.28 billion in the fourth quarter, trying to bring its total for 2022 to $13.72 billion.
The new Meta, originally known as Facebook, had a difficult first full year. In late 2021, Zuckerberg renamed the corporation and said that its future will be in the multiverse, a digital realm in which people will work, buy, enjoy, and study.
Reality Labs made $727 million in the fourth quarter and $2.16 billion in profit in 2022, a decrease from $2.27 billion in 2021, counting Quest headset purchases. In other terms, the segment lost more than six times the income it made last year, but represented less than 2% of overall Meta sales.
Reality Labs was expected to report a quarterly annual loss of $4.36 billion on sales of $715.1 million. Meta announced in July that it was boosting the price of its Quest 2 VR headset by $100. At the time, the corporation stated that the price increase was required to account for inflationary pressures. In October, Meta introduced its more costly Quest Pro VR headset, offering it to businesses as an enterprise-workplace gadget for $1,500. This week, Meta is offering a $400 discount on their high-end VR gear for a limited time.
So far, investors have been dissatisfied with the outcomes. Last year, Meta lost nearly two-thirds of its worth as metaverse expenses skyrocketed and the company’s primary online ad business was harmed by a weakening economy, intense competition from TikTok, and Apple’s security upgrade, which limited ad targeting.
The business revealed fourth-quarter earnings that were above analysts’ sales projections and unveiled a $40 billion repurchase on Wednesday, driving the stock up more than 17% in extended trade.