Meta CEO Mark Zuckerberg said during a shareholder meeting that the company is expected to lose a significant amount of money in the metaverse in the short term. In the meantime, you will expect revenue growth from Instagram Reels.
Meta’s metaverse game will result in a “significant” loss in the short term, according to CEO Mark Zuckerberg, who made the statement during a May 26 shareholder meeting. The entrepreneur said it will be lucrative in the long run and that the company’s revenue growth will come from its Instagram Reels for the time being.
Losses up to five years
Zuckerberg believes that the metaverse strategy may result in these losses for up to five years, which will undoubtedly weigh on the company’s stock . Meta’s share price has suffered a precipitous drop in 2022, down 43.4% YTD.
The social media giant remains bullish on the metaverse, despite its lackluster Q1 2022 financial report.
Meta is doubling down on its metaverse efforts by developing multiple projects.
He ‘s also interested in hardware devices, which will play a central role in the metaverse, as users can experience it through virtual reality. It set up its first physical store in April 2022 to let users try out the hardware.
One of the biggest features is crypto and the payments themselves, as the company has released a currency for use in its Horizon Worlds VR app. The signs are very clear that Meta wants to dominate the metaverse.
Meta’s focused goal in the metaverse
Meta has swung heavily into the metaverse, aiming to be the top platform for your virtual experiences. This change comes as Facebook struggles to sustain growth and Instagram faces stiff competition from TikTok.
The changing landscape of social experiences is best addressed with virtual reality and augmented reality experiences, and Meta feels she can seize the opportunity.
However, as noted above, the effort comes at a cost: billions have been invested in the metaverse, and Meta has had to scale back.
It’s not just the full metaverse experience that Meta has liked. The company is also focusing on working NFT on Instagram , so that users can implement NFT collectibles on their profiles.
These NFT features are expected in the near term , Zuckerberg said in March 2022. Facebook will also have NFT features.
Rachel Maga is a technology journalist currently working at Globe Live Media agency. She has been in the Technology Journalism field for over 5 years now. Her life’s biggest milestone is the inside tour of Tesla Industries, which was gifted to her by the legend Elon Musk himself.