Since Meta’s stock has lost about 65% of its value this year, some have questioned CEO Mark Zuckerberg’s risky wager on the metaverse at a time when the business has reduced other expenses, including layoffs on a large scale.
Despite concerns regarding the business unit centered on augmented and virtual reality and the so-called metaverse, Facebook parent firm Meta Platforms Inc. will continue to allocate around 20% of its overall costs and expenses to Reality Labs in 2023.
Little has changed from the 18% of spending Meta allocated to Reality Labs in the third quarter according to the prediction, which CTO Andrew Bosworth provided in a blog post on Monday. This indicates that Facebook, Instagram, WhatsApp, and Messenger will continue to get the majority of the company’s funding, which Meta refers to as its “family of applications.”
According to CTO Andrew Bosworth, Meta will continue to invest 20% of its total costs and expenses in Reality Labs in 2023. According to Reality Labs, its business operations lost $9.4 billion in the first nine months of 2022.
Bosworth continued, “Economic difficulties…added to strains on Meta’s main business, generated a perfect storm of skepticism about the investments we’re making.
Some have questioned Meta CEO Mark Zuckerberg’s costly wager on the metaverse, which comes as the business has cut other costs, including extensive layoffs, as the company’s stock price has fallen by about 65% this year. Through the first nine months of the year, Reality Labs recorded an operating loss of $9.4 billion; in contrast, the Meta family of apps generated about $32 billion in profit.
Bosworth claimed that 2022 had proved more difficult than anticipated.
“Global economic problems and pressures on Meta’s main business have combined to produce a perfect storm of cynicism about the investments we’re making, “added he.
However, he continued, abandoning long-term plans in favor of concentrating just on the present can have “disastrous repercussions.”
According to him, a company devoted to remaining at the forefront of one of the most competitive and innovative industries on earth should invest 20% of its budget in cutting-edge technologies
