Meta’s Metaverse Branch Lost $2.8 Billion In Q2: Report

Meta’s Metaverse branch lost $2.8 billion in the second quarter and Zuckerberg said that the loss could actually reach the trillions so let’s read more today in our latest cryptocurrency news.

Meta’s Metaverse branch disclosed that its metaverse division suffered losses of $2.81 billion in the second quarter and it puts the division’s year-to-date loss at $5.77 billion. The division, Facebook Reality Labs is different from Instagram, Messenger, Facebook, and Whatsapp and focuses on building the software, hardware, and content central to the Meta push into the metaverse. In the Q2 2022 Earnings report, FRL generated $452 million in revenue in period which is down 35% from the last quarter. The division posted a huge annual loss of $10.2 billion and it is on track to surpass this figure in 2022. The Meta CEO Mark Zuckerberg said:

“This is obviously a very expensive undertaking over the next several years. But as the metaverse becomes more important in every part of how we live… I’m confident that we’re going to be glad we played an important role in building this.”

When Zuckerberg changed Facebook’s name to Meta, he placed the company on a path to dominating the metaverse as a future version of the internet that is navigated by the digital avatars which are expected to become central to commerce, entertainment, work, and social interactions. The company’s multi-billion dollar metaverse play hasn’t paid off yet but Zuckerberg tried to convince the shareholders that It is a long-term strategy. Zuckerberg added:

“By helping to develop these platforms, we’re going to have the freedom to build these experiences the way that we and the overall industry believe will be best, rather than being limited by the constraints that competitors place on us. I feel even more strongly now that developing these platforms will unlock hundreds of billions of dollars, if not trillions, over time.”

The company’s revenue improved by over 3% this quarter to $28.8 billion and despite that, after the Q2 earnings report was released, the stocks fell 4% in after-hours trading near $163.

As recently reported, Meta will shut down Novi, the company’s digital wallet payments pilot and will end the Libra stablecoin experiment a few years after the company unveiled the ambitions but then doomed the crypto payments gamble. Meta announced the news on the service’s website and texted users a link to the announcement urging them to withdraw their money as soon as possible. The users will lose the ability to add money to their accounts and the Whatsapp account as well as the Novi app will become unavailable but once the pilot ends, the users will not have access to their transaction history and data.