On a call with analysts as part of Meta’s third-quarter earnings report, Zuckerberg and other Meta executives fielded a number of questions from analysts who sounded increasingly frustrated with the company’s rising costs and expenses, which jumped 19% year over year to $22.1 billion during the quarter.
Meta shares tanked 24% Thursday morning, the day after the company reported weak fourth-quarter guidance below analysts’ estimates. The Facebook parent’s revenue slipped 4% year over year to $27.7 billion in the third quarter while its profit plummeted 52% to $4.4 billion.
Meta’s Reality Labs unit, which is responsible for developing the virtual reality and related augmented reality technology that underpins the yet-to-be built metaverse, has lost $9.4 billion so far in 2022. Revenue in that business unit dropped nearly 50% year over year to $285 million, which Meta’s chief financial officer, Dave Wehner, attributed to “lower Quest 2 sales.”
“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year,” Meta said in a statement. “Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run.”
Brent Thill, an analyst at Jefferies, said during the earnings call that investors are likely feeling as if there are “too many experimental bets versus proven bets on the core” and asked why Meta believes the experimental bets like the metaverse will pay off.
Huge asshole who got tremendously lucky in creating one of the worst companies in global history now believes he is a huge genius and thus will blow up his own company in order to engage in a ridiculous futuristic virtual reality world no one is going to want. Root for injuries!