Key Points:
- On Wednesday, Meta will announce its earnings, and experts predict that Reality Labs’ losses will continue to rise sharply.
- Earlier last October, it was reported that in the third quarter of 2022, Reality Labs, the Metaverse division, had a loss of $9.4 billion that year.
Meta will announce its financial report for the fourth quarter and full year of 2022 today after the stock market closes on February 1, US Eastern Time. After the financial report is released, Meta will hold a financial report conference call at 5:00 pm Eastern Time on February 1 to discuss the results of the financial report.
According to The Block, Meta has lost more than $600 billion in market value since the company’s market value began to decline at the end of 2021. Analyst Michael Nathanson‘s company said it expected Reality Labs, the Metaverse division, to lose $13.8 billion in 2022.
Previously, it was reported in October last year that by the third quarter of 2022, Reality Labs had lost $9.4 billion that year.
Meta reported that its Reality Labs, which is in charge of realizing the CEO’s metaverse fantasies, lost $3.7 billion in the third quarter of 2022. For the fourth quarter, profits, which will be revealed on Wednesday after the closing, are anticipated to increase to $4.4 billion.
Of course, investors need to keep a careful check on both these projections and the company’s actual performance. Investors would be advised to pay attention to a few other factors, though 11,000 people have already left the company in an effort to reduce costs. Although the exact date of these cost savings is unknown, they could force a change to the company’s earlier spending projection.
Naturally, investors should keep up their attention on everything metaverse-related. The company has so far made substantial investments with little in the way of returns. If the company’s efforts began to pay off, it would be fantastic for the investors. However, it would be almost as beneficial if the corporation declared that the program would be scaled back or completely discontinued.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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