Investors attack Mark Zuckerberg as his pricey metaverse pitch falls flat.
- Wall Street is growing frustrated with Meta CEO Mark Zuckerberg’s massive and risky bets on his metaverse project, which increased the company’s costs by 5% in the third quarter.
- After posting its fourth straight quarterly loss, Meta Platforms Inc.’s stock fell 20% and lost $67 billion in market value.
- The Facebook-parent expects operating losses at Reality Labs, which created the metaverse, to “increase dramatically” next year.
- Meta’s investments were called “super-sized and scary” by one shareholder. Wednesday analysts called them “confusing and bewildering” and Meta’s inability to minimise expenses “very alarming”.
- Reality Labs lost $3.67 billion in July-September, up from $2.63 billion a year earlier. Revenue roughly halved.