Meta (formerly Facebook) sees stock value rise despite $13B in VR losses

Meta ⁠— formerly Facebook ⁠— reported affirmative quality for wide investors but atrocious quality for those funny successful its virtual world (VR) part successful its Feb. 1 net report.

The institution saw important revenue, bringing successful $32.17 cardinal during Q4 2022 and $116.61 cardinal implicit the full year. Despite year-over-year losses (4% for Q4 and 1% for the full year), Meta’s Q4 gross was connected the precocious extremity of the $30-$32.5 cardinal estimation that it predicted previously. The steadfast besides announced a $40 cardinal buyback today.

That quality has positively affected the worth of META stock, up 2.79% implicit the day. META has risen from $148.01 to $153.12 implicit the past respective hours.

Meta besides reported that its Reality Labs part saw $4.28 cardinal successful operating losses successful the 4th fourth of 2022 and $13.72 successful operating losses implicit the full year. According to reports from CNBC, the division’s autumn successful gross seems to beryllium owed to declining income and a request for VR exertion that tin beryllium utilized with its devices.

Reality Labs is liable for Meta’s “metaverse” products, including services specified arsenic its Horizon Worlds crippled and products specified arsenic its Quest headsets. Reality Labs besides became liable for assorted artificial quality (AI) projects opening successful 2022.

However, Reality Labs’s metaverse ambitions are champion known successful the crypto assemblage for spurring the inclination of non-fungible tokens (NFTs) successful virtual world projects. Horizon World features in-game tradable items, and though it does not usage NFTs arsenic the ground for those items, competing blockchain projects person capitalized connected the similarity.

The crypto-based VR satellite Decentraland saw its MANA token summation astir 550% implicit November 2021, conscionable aft Meta announced its metaverse plans astatine the extremity of October 2021. The Sandbox likewise saw its SAND token summation 850% that month. Several mainstream companies besides began pursuing metaverse and NFT plans then.

Hype astir the inclination died down successful 2022, and the tokens named supra person fallen backmost to baseline prices. Today’s quality suggests that the inclination could wane further.

The station Meta (formerly Facebook) sees banal worth emergence contempt $13B successful VR losses appeared archetypal connected CryptoSlate.