Mark Zuckerberg tries to reassure investors that Facebook's metaverse isn't a money pit, after shocking Wall Street with billions of dollars in losses from the Reality Labs division
Zuckerberg seems to want to reassure investors that the metaverse isn't a money pit. During a conference call to discuss quarterly results, the founder and CEO said he wanted to"level set on our business trajectory." While he still sees projects likeand the metaverse as important to the company's future and continued growth, he is"now planning to slow the pace of some of our investments.
He spoke specifically of Reality Labs on this front."I know it's expensive to build this," Zuckerberg said. Now, the plan is to grow revenue from its core apps business, including Facebook, Instagram and WhatsApp, enough"to fund" investment in the metaverse and Reality Labs, he explained. "That is not going to happen in 2022, but longer term, that is our goal," Zuckerberg added."Our priority is for the long term but it's possible that prolonged macroeconomic headwinds would cause us to trade off for shorter term financial goals."
That was reassuring for investors. Shares of Facebook, now called Meta Platforms, jumped 18% in late trading on Wednesday.
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