Faced with rather disappointing financial results, Meta decided to take out a loan… The aim being for the company to continue financing a sector that is particularly close to its heart.
Is the tide turning for Meta? The parent company, which includes Facebook, Instagram and even WhatsApp, saw its turnover fall by 1% in the second quarter of 2022. The same is true for profits, down 36% compared to last year. Colossal losses caused by fierce competition on the side of social networks (hello TikTok!). The Californian firm has also spent a lot (too much) in a specific area.
Meta will indeed go into debt
Indeed, since Zuckerberg and his troops are betting big on the metaverse, research and development costs for virtual reality technologies have soared! In 2021, Meta disbursed $10 billion in this sector alone. An extremely large sum that the brand finally chose to borrow. Thus, on August 9, the famous company contracted the first debt in its history worth 10 billion dollars.
As pointed out Century Digital, Facebook was to date the only GAFAM multinational not to have requested any loan. An aberration for some financial analysts who find this decision “ intelligent “. Meta will therefore be able to continue to invest massively in its dear metaverse.
Source : Century Digital
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