Meta still believes in the Metaverse

In the last year, Meta CEO Mark Zuckerberg has broadly shifted the company's focus to the Metaverse.starting with the name change of the corporation andending with product design. Q4 2022 results have recently surfaced, and they prove that the direction of the Metaverse-obsessed Zuckerberg may not be promising.

The company officially announced large netabout $4.3 billion in losses in its Metaverse and VR division in the last three months of 2022. Meta's share price has also fallen over 50% over the past year to $153.12. However, compared to the previous month, it increased by 23%. Despite heavy losses from its metaverse arm, Reality Labs, the tech giant still posted a quarterly net income of $4.65 billion.

Application divisions, which includeFacebook, Instagram, Messenger and WhatsApp performed much better, posting profits of $10.7 billion. Reality Labs also lost $3.7 billion in the third quarter, which was actually larger than the division's second-quarter loss of $2.8 billion US dollars and $2.9 billion US dollars in the first quarter. During the call, Zuckerberg said: “Our community continues to grow, and I am pleased with the active participation of all our apps. Facebook just hit two billion daily actions. The progress we are making on our AI discovery engine and Reels is a major driver of this. In addition, our management theme for 2023 – “A year of performance”, and we are focused on becoming a stronger and more agile organization”.

Continuing losses in this particulardivision appeared after Facebook changed its name to Meta in October 2021. Then, in November, Zuckerberg said during a call with company representatives: “I understand that many people may not agree with this investment. But from what I can tell, I think it will be a very important thing, and I think it would be a mistake not to focus on any of these areas that I think will be fundamentally important for the future.&#8221 ; A week after that, the company laid off 11,000 employees, representing 13% of Meta's workforce.