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- Meta’s Reality Labs division posted a whopping loss of $2.9B during its first quarter earnings call, but Mark Zuckerberg is affirmative regarding the future.
- As a whole, revenue of Reality Labs were beyond the expectation, experiencing mammoth revenue streams in the initial quarter this year.
- During February, Meta witnessed the greatest daily crash in share market history, as $251 Billion faded away from its total market capitalization.
Huge Losses For Reality Labs
Meta platforms Inc., previously called Facebook Inc., posted its first quarter earnings for this year, with Metaverse-concentrated Reality Labs division posting escalated losses.
Reality Labs division — previously called Oculus Division of Facebook — has been spending higher sums of capital on the development of VR and metaverse associated products, posting a whopping $2.9 Billion loss during Q1 this year.
All-inclusive, revenue streams by Reality Labs were beyond expectations, witnessing $695 Million in revenue during the initial quarter of 2022 from the sales of stuff such as Meta Portal hardware and virtual reality headset.
During an earnings call, Mark Zuckerberg, CEO of Meta stated that damages in this division are to be anticipated, thanks to the fact that Reality Labs is still prominently concentrated on R&D for a series of hardware and software products like Project Cambria.
Mark Zuckerberg stated that he is well aware of how much this will cost to develop this, it is something that has never been developed before. And it is a latest paradigm for social connection and computing.
He offered a statement saying that the organization anticipates to be meaningfully improved at monetization than others in sector, and anticipates that it may become a viable advantage for the platforms they build.
$10 Billion Damage During 2021
As per the financial statements earlier this year, Reality Labs experienced about $10 Billion of damages throughout 2021, with about $4 Billion of damages owing to worker costs and R&D.
All-inclusive, organization’s total revenue for initial quarter this year is $27.9 Billion from $26.1 Billion during the initial quarter of previous year. Meta’s quarterly financial report was well received by the market, with organization’s shares value escalated by 18% during after-hours trading.
During February, Meta got inflicted by the greatest loss it has faced in its history, as $251 Billion got faded away from its entire market cap. The crash came in the wake of total daily active users falling by roughly 1 million.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
