Zuckerberg Still ‘Confident’ In Metaverse Plans Despite Stock’s 20% Slide

Analysts project the company’s total metaverse spending will eclipse $60 billion


Facebook CEO Mark Zuckerberg | Source: Shutterstock


key takeaways

  • Meta said it faces “headwinds from both increased competition for people’s time and a shift of engagement”
  • Zuckerberg said the company would release a “high-end” virtual reality headset by the end of the year

In an earnings call that underwhelmed Wall Street expectations, Facebook parent Meta disclosed a loss of more than $10 billion from the company’s first forays into the metaverse.

The spending, via Meta’s recently formed Reality Labs Division, contributed to a quarterly profit dip of 8%, according to the company’s accounting. The social media giant warned investors of future “headwinds from both increased competition for people’s time and a shift of engagement.”

Of Meta’s Web3 endeavors, CEO Mark Zuckerberg said the company’s “path ahead is not perfectly defined,” adding that he’s “confident” in the unprecedented investment in the nascent space.

The mounting costs, however, may just be getting started, considering analysts project the social media giant to spend at least $60 billion to carry out its full metaverse vision. 

In the company’s first earnings report since rebranding from Facebook to Meta, Zuckerberg also said the company is planning to release a “high-end” virtual reality headset by year-end.

Meta reported revenue of $2.3 billion from Reality Labs in 2021. Daily active users — a key growth metric for social media companies — fell in line with analyst expectations of 1.95 billion, blocking in at 1.93 billion.

Zuckerberg previously said the company’s spend in the space would focus on virtual and augmented reality efforts.

Facebook and Instagram have additionally both recently been linked to integrations of non-fungible tokens (NFTs).

Two sources familiar with the matter told the Financial Times that Meta has considered launching an NFT marketplace, as well as allowing users to showcase NFTs on their profiles.

The company’s stock plunged more than 20% after hours to about $249 per share. It is down roughly 4% year-to-date.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


Revolut said that the standalone crypto exchange is currently “invite only”


The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders