Wall Street is growing impatient with Mark Zuckerberg, the CEO of Meta, over his massive and risky bets on his metaverse project. It contributed to the firm’s total costs by 5% in the third quarter. After trading hours, investors rushed to sell Meta platforms INC stock, driving it down 20% and erasing $67 billion off the company’s market worth after it reported its fourth consecutive quarter of declining quarterly earnings.
Meta Stakeholder
The Facebook-parent company warned that its overall costs might increase by as much as 16% in the upcoming year and predicted that Reality Lab’s net losses, which created the metaverse, will climb dramatically. According to a Meta stakeholder, the company’s investments are mega-sized and scary. On Wednesday, analysts described them as confusing and bewildering and referred to Meta’s struggle to reduce expenses as very troubling.
During an earnings conference call with executives, Jefferies analyst Brent Thill said that he believed the current outline of how shareholders feel is that there are too many innovative bets vs. proven investments on the base. Everybody would be interested to know why you believe this pays off.
Losses at Reality Labs increased dramatically in the July-September quarter, rising from $2.63 billion to a staggering $3.67 billion. Income virtually fell in half. On the call, Zuckerberg stated that it would be a huge mistake for them to concentrate on any of the following sectors that will be vitally crucial for their future.
