The giant Meta expects to lose a lot of money in the short term. The reason ? Investments in the metaverse.
A few months ago, panic dominated among the shareholders of Meta, ex-Facebook, after the announcement of a drop in the number of users and losses due to the metaverse estimated at 10 billion dollars. And if, a few months later, the social networking giant has raised the bar on this first data, Mark Zuckerberg himself believes that the metaverse will cause the company to lose a lot of money in the short and medium terms.
Zuckerberg wants to reassure his investors about the future profitability of the metaverse
It is now known to everyone that Meta, whose stock market share has almost halved since the beginning of the year, is making the metaverse its top priority for its future. The group allocates colossal sums of billions of dollars to its development.
Mark Zuckerberg himself confirmed this a few days ago, during a meeting of the group’s shareholders. The founder of Facebook, questioned in particular on the questions of return on investment, admitted that he planned to invest massively in the development of the metaverse, thus implying significant losses, which he estimates to have to make on the three to five coming years.
After this period of development, investment and public adoption, the “Zuck” is convinced that the metaverse will have become profitable, thanks in part to the creator economy. The CEO of Meta insisted on this point. It thus recalls that users, developers and others create or will create companies that will allow the sale of goods and services in this virtual world.
Use innovative formats, such as Reels, to mitigate losses
The Californian company, which symbolically changed its name recently to become Meta, relies on its Horizon Worlds application, its headsets and its VR glasses to develop an entire ecosystem around the metaverse, both software and hardware, making everything accessible to as many people as possible. large number.
” We want hardware to be as affordable as possible for everyone and ensure the digital economy grows “Explained Zuckerberg to his shareholders.
Until then, Meta intends to fill the losses due to the metaverse with the new trendy formats, like Instagram Reels and other short video services, which are seeing the greatest growth within the company. The objective is in particular to confront and keep at bay an increasingly competitive TikTok.
Source : Bloomberg
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