Mark Zuckerberg during the unveiling of the financial report for the first quarter of 2022 Due to the current state of the business, the company is said to be slowing down the Metavars project until further notice. During this period, Meta managed to earn $ 7.5 billion, which is 21% lower than the same period last year. Of course, the company's revenue increased by 7% to $ 27.9 billion, which is the lowest growth rate since the company's public offering over the past decade.
Despite all these problems, Mark Zuckerberg still spends billions of dollars developing Metavars devices and software; He believes that Metavers will become as important as the Internet in the near future. Reality Labs Meta, the maker of the Quest VR headset and other augmented reality glasses, has about 17,000 employees and lost about $ 3 billion in the last quarter alone, a very high figure. The main problem is that many of the company's investors are not very satisfied with these heavy costs for the development of Metavars. Because even if these measures are effective, the result may be seen years later.
Sometimes stock prices alone tell the story of company change. In the case of Meta, its stock price has dropped by about 50% since the company changed its name from Facebook. At the time, Zuckerberg announced that he was spending about $ 10 billion a year on the Reality Labs division, and said that at best, in the second half of the current decade, some of the results of this investment will be seen.
As you probably know, Meta's core revenue comes from advertising, and if revenue in this sector had grown as significantly as in previous years, the company's investors probably would not have been so critical of MetaRes's high costs. But the situation is not favorable for Facebook at all; On the one hand, many young people and teenagers are leaving Facebook and Instagram, and on the other hand, Tikotak is attracting these users with considerable speed. Apple's new rules to crack down on advertising have also reduced Meta revenue by $ 10 billion.
Meta shares have grown by 15%.
On the other hand, we should note that Instagram is still copying various features It is TickTock, and Zuckerberg apparently believes that such an approach will increase the number of users in the short term. Meta is also set to unveil a new advanced headset this year. On the other hand, we should also mention Apple's efforts to enter this market, which will make Meta work harder to attract users.
- What is Metavars and why should you know about it?
Source: The Verge