Facebook Shows Metaverse Is Hemorrhaging Money (So Far) – TheStreet

Facebook’s  (FB) – Get Meta Platforms Inc. Class A Report bet is not paying off. For the moment. We will probably have to wait a little longer to pass final judgment.But at a time when all companies, small, medium and multinational, are throwing themselves headlong into the metaverse, this new virtual world that the gurus and big names in tech are selling us, the performance of Facebook’s metaverse division should challenge more than one. The company, which renamed itself Meta in October in order to put many controversies behind it, on Wednesday released for the first time earnings for its metaverse projects.Reality Labs, which includes augmented- and virtual-reality-related consumer hardware, software and content, is a sink for the company founded and led by Mark Zuckerberg.This division lost $10.2 billion in 2021, more than double the operating losses recorded in 2020 – $4.62 billion. In 2019, the operating loss was $4.5 billion.Big Investments AheadInvestors should expect losses in the coming months to continue to widen as in the fourth quarter the division lost $3.3 billion, 26% more than it did in the quarter ended in September.”Reality Labs expenses were $4.2 billion, up 48%, driven by employee-related costs, R&D operating expenses and cost of…
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