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The Uncertainty of Metaverse Triggers the Concern of Meta’s Investors

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Despite the big financial loss and drastically dropping share price, meta still sticks to its long-term mission of metaverse. Nevertheless, Investors have a lot of concerns about that.

After the release of financial report of Meta, the parent company of Facebook, the investors have to concern more about the strategy of metaverse due to the gigantic financial loss. The Reality Labs reported an operation loss of $3.7 billion for the last season, and only 285 million net income, which is 48.9% lower than last year.

The catastrophic financial status of Meta also arouses the dissatisfactory of Wall Street. In after-hours trading, Meta's share price fell about 20%. The freelance crypto educator and YouTube influencer Quinten Francois describes it as "a 20% 5 minute candle".

Meta primarily attributed the loss to the manufacturing costs of its newly launched virtual reality headset, Meta Quest Pro. The product was manufactured in the current quarter and has been on sale since yesterday. But since it retails for three times the price of its predecessor, Quest 2, the $1,500 headset currently has only known figures for costs, while revenues have not yet been confirmed.

What’s worse, Meta also faces other challenges like tough regulatory scrutiny. This month, the company claimed its sell of Giphy, an online repository of animated clips which are known as GIFs. The British antitrust regulators said Meta’s deal for the company had decreased competition in social media as well as digital advertising. Meta’s acquisition of Within, the establisher of a virtual reality fitness app, has also been stopped by the Federal Trade Commission due to antitrust concerns.

Despite all the difficulties and an uncertain outlook,, Meta remains committed to its long-term vision, and Meta's Chief Financial Officer David Wehner said, "After 2023, we hope to adjust the pace of investment in Reality Labs so that we can achieve our goal of long-term overall revenue growth for the company. " According to the CEO Mark Zuckerberg, “a lot of people might disagree with this investment [in the metaverse], but from what I can tell, I think this is going to be a very important thing,”

In the contrast, investors and analysts show more worry about the future of metaverse. Financial advisor and President of Bone Fide Wealth Douglas A. Boneparth claims “ Maybe Meta investing $10 billion in a fake reality was a bad idea” Brent Thill, managing director at Jefferies Group reckons that a great bunch of investors feel like they [Meta] are distracted.

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