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· Posted on
February 21, 2024

Meta has thrown all its chips into the metaverse... and it's kinda, sorta not working out for them so far

Meta just released its quarterly results and it's fair to say the Metaverse has become its major focus.

What's the key learning?

  • Meta's metaverse segment, called Reality Labs, saw $3.7b USD in losses this quarter.
  • Meta expects these losses to grow significantly year-over-year in 2023, so it’s not surprise that its share price plummeted 19% at one point because of the news.
  • In the business world, there are two kinds of decisions: ones that are reversible and ones that are almost impossible to reverse.

👉 Background: It's well-publicised that Facebook changed its company name to Meta back a year ago. And this was a clear signal to the market that the metaverse is its future.

👉 What happened: Meta just released its quarterly results and it's fair to say the Metaverse has become its major focus. Its metaverse segment, called Reality Labs, saw $3.7b USD in losses this quarter.

👉 What else: But the worst part? Meta expects these losses to grow significantly year-over-year in 2023. So it’s not surprise that its share price plummeted 19% at one point because of the news (or $67 billion USD).

What's the key learning?

💡In the business world, there are two kinds of decisions:

  • the ones that are reversible (ie two way doors)
  • the ones that are almost impossible to reverse (ie one way door)

💡The challenge for Meta and its investors is that Zuck has entered into the metaverse directly through a one-way door. No returns. No key.

  • He changed the company name
  • He’s invested a whopping amount of money in the metaverse money-pit
  • It's pretty much all he talks about when talking about the future of the company

💡And with not much to show for it so far, Meta’s share price and Zuck’s personal wealth are really paying the price.

‍

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