Finst

Despite billions in losses, Mark Zuckerberg stays optimistic

In the first quarter, Meta's Metaverse division lost $4 billion.

By Mike Hesp
• 2 min read
Despite billions in losses, Mark Zuckerberg stays optimistic

In the first quarter, Meta's Metaverse division lost $4 billion. Meta CEO Mark Zuckerberg remains confident, however.

On April 26, Meta (Facebook) published its earnings report for Q1 2023. The Metaverse division of the company, Reality Labs, posted a loss of $3.99 billion. In a press release, Mark Zuckerberg commented on the future strategy: "We have been focusing on both AI and the Metaverse for years, and we will continue to focus on both."

"We expect Reality Labs' operating losses in 2023 to grow on an annual basis," the statement continued.

Building the Metaverse is, however, a long-term project, Zuckerberg said. To push the vision forward, Meta is leaning more on artificial intelligence to execute its plans. Whether the Metaverse flagship project "Horizon Worlds" will be successful in 2023 remains to be seen. So far, interest has been tepid.

Meta's total revenue in the first quarter of 2023 was around $28.65 billion, better than forecast. Meta's stock briefly rose about 12% in after-hours trading. After a mixed year, Meta was forced to cut staff: 11,000 employees had to depart. The crypto sector also faced a wave of layoffs.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.