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.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

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

Screenshot 2024-05-23 091855.png


Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.



As part of the #Breakout2024 plans, Radix has introduced Token Trek


House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January


Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do


And, weeks of a potential crypto ETF decision are no stranger to chaos


The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month


More than half of Solana transactions fail