Zuckerberg was defiant in a call with analysts on Wednesday. He said people will “look back decades from now” and “talk about the importance of the work done here” when it comes to the metaverse, virtual reality and augmented reality.
“I understand that many people may object to this investment,” he said. “But as far as I know, I think this is going to be very important. I think it would be a mistake not to focus on any of these areas. I think it will.”
Meta’s financial woes stand out due to its size and status as one of the world’s leading technology companies. The company’s predicament also reflects the difficult environment that has engulfed other social media companies. Digital advertising has been hit by global economic uncertainty as brands reassess budgets. .
Last week, Snapchat maker Snap reported its slowest quarterly growth ever, with its stock down more than 75% this year. Twitter may be in the final throes of an acquisition by the world’s richest man, Elon Musk.
Meta faces other challenges, including intense regulatory scrutiny. Earlier this month, he announced that he was selling his Giphy, his repository online for his animated clips known as GIFs. This comes after the UK antitrust regulator said his $315 million deal with Meta has sharply reduced competition in social media and digital advertising. Meta’s acquisition of virtual reality fitness app maker Within was also blocked by the Federal Trade Commission over antitrust concerns.
Mike Proulx, research director at Forrester, wondered how Meta’s investment in the metaverse has paid off, given the small number of users despite Meta giving away younger users to rivals like TikTok. It is unclear whether the
“We need to talk about what Meta’s core business is at this point,” he said.
Despite the challenges, Meta has grown its user base. The number of people using apps like Facebook, Instagram, WhatsApp and Messenger every day increased to 2.93 billion in the quarter, a 4% increase from the same period last year.