Mark Zuckerberg’s Meta Platforms Inc reports loss of $4 billion on virtual reality

The final quarter and full-year financial results for 2022 were released by Meta META, the American multinational technology conglomerate behind Facebook, Instagram, and WhatsApp.

After the release of the results, the company's stock value increased by 17%, but there is something investors should bear in mind before investing in Meta: the losses of Reality Labs, its VR division.

This division produces virtual reality and augmented reality hardware and software, including virtual reality headsets such as Quest, and online platforms such as Horizon Worlds.

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In the last quarter of 2022, the company, led by Mark Zuckerberg, confirmed a loss of $4 billion due to VR and metaverse development. Over the course of the year, the company suffered a total loss of over $13 billion as a result of its unsuccessful attempt to create a popular metaverse, as per Kotaku.

In the final months of 2022, Reality Labs generated a revenue of $727 million, a decrease of 17% compared to the same period in 2021, according to the division's revenue.

It is worth noting that in November 2022 Meta completed 11,000 employee layoffs, attributing them to a COVID 19 economic slowdown, increased competition and reduction of advertising signals.

The company anticipated lower expenses than previously estimated in 2023, but didn't say if it will reduce metaverse spending.

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In November, Zuckerberg tried to make sure investors that the company's future income growth will come from WhatsApp and Messenger.

Meta Platforms Inc was trading at $184.16 at the time of publication, down 3.89%.