Meta's meta -verse division loses almost $ 3.7 billion in the 3rd quarter

Meta's meta -verse division loses almost $ 3.7 billion in the 3rd quarter

Metas reality laboratories Business-The department that is responsible for the production of metaversse-related technology-had to accept serious losses again in the third quarter Billions of US dollars.

The company's Family of Apps division, which includes Facebook, Instagram, Messenger and WhatsApp, recorded a net profit of around $ 9.3 billion in the quarter, which corresponds to a decline of around 28 % compared to the previous year.

Total, the profit per share of Meta was $ 1.64 behind the expected $ 1.89. The net profit of almost $ 5.7 billion in the third quarter has dropped by 46 % compared to the third quarter of 2021.

"We assume that the loss of business from Reality Labs will increase significantly in 2023 in the year," said David Wehner, Chief Financial Officer from Meta, in a statement. "In addition to 2023, we expect the investments of Reality Labs to accelerate so that we can achieve our goal of increasing the company's operating result in the long term."

Meta reported in July A Quarter $ 2.8 billion for the Reality Labs division, which contributes to a loss of $ 2.9 billion in the first quarter of this year. Last year the unit published a Annual loss of 10.2 billion dollar September 30th to almost $ 20 billion.

The continuing losses come in this business segment after Facebook changed its name in Meta in October last year to benefit from the expected meta-verse trend.

The Meta share price has fallen by about 62 % since the beginning of the year. The price fell by around 11 %in the aftercare trade from 4:30 p.m.

im Letter to Mark Zuckerberg and the board of Meta, which was published on Monday, Brad Gerstner, CEO of Altimeter Capital, said Meta "lost the trust of investors" and recommended that it should tighten his focus. Altimeter is a long -term shareholder of Meta, he said.

As part of this proposed realignment, Gerstner said that Meta should limit his investments in the metaverse and reality labs to no more than $ 5 billion a year-less than its planned investments between $ 10 and $ 15 billion a year, which, according to Gerstner, could be 10 years to achieve results.

"Estimated $ 100 investments in an unknown future are oversized and scary, even for silicone-volley standards," said Gerstner. "We have little doubt that investors and others would be happy to support the expansion of these investments [Return on Investment] becomes more tangible - if still in the long term."

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The contribution "Meta’s Meta -Versse Division loses almost $ 3.7 billion in the 3rd quarter" is not a financial advice.