Half* Platforms has spent more than $ 15 billion since the beginning of last year on its division. Reality Labs, which deals with virtual reality and in particular creation of the metaverse. However, the company does not disclose data on what exactly such significant investments are spent on. Experts believe the lack of transparency in investor relations could harm Mark Zuckerberg’s company in the future.
Image source: Meta*
“The problem is that they were spending money, but transparency in dealing with investors was disastrous. This is still a risky bet for Zuckerberg and the team, because right now they are betting on the future, while their core business continues to experience serious difficulties.– believes Wedbush Securities analyst Dan Ives (Dan Ives).
When last year Meta* first released financial information on Reality Labs, the company was said to have invested more than $ 10 billion in metaverse development. To date, Zuckerberg’s company has reported over $ 5 billion in losses in the first six months of 2022, and some analysts believe that by the end of the year, the company’s losses in volume will exceed last year’s figure.
Meta officers* declined to comment on this issue, noting that the company does not disclose financial details relating to the development of the Reality Labs division. According to Ives, the Meta amount of money* Metaverse spending is worrying, especially considering the company’s new releases earlier this month, including a state-of-the-art VR headset Quest Pro for $ 1500 and a digital version avatar for the metaverse with legs.
Benchmark analyst Mark Zgutowicz suggests that at least 60% of Reality Labs’ losses are due to the hefty R&D costs required to create an entirely new virtual world. “There won’t be a true metaverse, at least in terms of scaling, until we can all wear headphones that don’t make us look alien.”– says Zgutovich.
According to the analyst, Meta* there are legitimate reasons to try doing it yourself rather than buying other companies. “It is difficult for them to enter the market and acquire other unique software companies because they are so constrained by regulations that they have to stay where they are and build something organic. Where transparency could be better is how and when they expect to get a return on this investment. “Zgutovič said.
* It is included in the list of public associations and religious organizations in respect of which the court has decided that the liquidation or prohibition of activities has entered into force for the reasons provided for by Federal Law No. 114-FZ of July 25, 2002 “On the fight against extremist activity”.
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