Wall Street is getting used to the massive amount of money Mark Zuckerberg continues to pour into the metaverse.
“This is a very long-term bet,” Zuckerberg said on a call with analysts. “I can’t guarantee I’ll be right about this bet. But I think that this is the direction in which the world is going”.
Zuckerberg went on to explain the various consumer technology trends he’s observed, which lead him to believe that a more immersive version of the Internet will become the norm in the coming years.
“There’s, you know, a billion or 2 billion people who have glasses today. “I think in the future it’s all going to be smart glasses, and all the time we spend on TVs and computers, I think it’s going to become more immersive and look a bit more like VR in the future,” Zuckerberg said. “What we’re seeing are richer ways of communicating between people, even through the mobile apps that we have, moving from text to photos and videos, just this continuing trend of being more immersive. All of these trends line up to make me think this is the right thing to do. I think we’ll be happy we did.”
The meta focused on artificial intelligence
This time around, analysts hounded Zuckerberg much less about metaverse spending than in previous quarters. The difference: Last year, Meta reported slowing or negative revenue growth. Now, much of the attention during the call focused on Meta’s AI projects and the surprising growth and success of Threads.
Wall Street’s acceptance of metaverse spending is likely related to the improvement in Meta’s overall business performance. Revenue rose in the second quarter and is expected to rise again in the next. Meta made huge layoffs and cut expenses in other ways.
This means Zuckerberg is moving closer to fulfilling his promise from last year to grow revenue and profit from Facebook, Instagram and WhatsApp enough to cover the ongoing costs of the metaverse.
During the second quarter, profit from this family of applications increased by $2 billion, while losses from Reality Labs were $3.7 billion. So, a little more than half way, appropriate Business Insider.
2023-07-27 13:11:04
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