Meta’s Metaverse Is Waste Of Time And Money? See What Experts Think

Meta has invested over $15 billion in the Reality Labs metaverse venture since the beginning. However, it hasn’t revealed the exact amount of funds being used. Some experts are concerned that the company is spending the right amount to pay for bad ones.

“The issue is that they are spending the money; however, the disclosure to investors was a mess,” Dan Ives, an analyst in the field of technology with Wedbush Securities, said.

“This is a perilous gamble for Zuckerberg and his team since, at present, they’re betting their money on the future while facing enormous headwinds in their main company,” he added.

Last year, Meta began to release financial details regarding Reality Labs, the company announced that it had invested around $10 billion into this venture, but there is no end. Till the first five months of 2022, the company has posted a more significant five billion-dollar loss, and some analysts are predicting that the losses total this year will surpass the previous year’s.

Meta did not comment on this story; however, a spokesperson from the company told reporters that Meta does not provide financials for the Reality Labs segment.

Ives stated that the amount Meta has spent on its metaverse project is worrying, particularly in light of the new features it announced this week, including a brand-new $1500 headset and a variant of avatars with legs, which he described as “underwhelming.”

Mark Zgutowicz, an analyst at Benchmark, even though he isn’t sure, estimates that 60 percent of the expenses in Reality Labs are due to the enormous cost of research and development which go into creating an entirely new environment.

“There is no metaverse that is real in the sense of a scalable perspective until we can all wear glasses that won’t make us appear like an alien or some other creature,” he said.

Zgutowicz pointed out Meta is legitimately making everything they can, however.

“It’s difficult for them to venture out and purchase other distinct software firms because they’re restricted by regulatory requirements that they must remain inside their own house and create something from scratch,” he said.

Indeed, Meta isn’t the only business that has not reported specific losses. This is a standard procedure for Corporate America.

Ivan Feinseth, a tech analyst at Tigress Financial Partners, said he is convinced of Mark Zuckerberg’s vision of the future as well as the potential of the metaverse.

“When Facebook first bought Instagram, people laughed at him at the time and thought he’d be insane. They said, “This guy will spend all that money, and Instagram was one of the top acquisitions of all time. Not just for Facebook or ever within the realm of mergers and acquisitions.” the CEO said.

Popular Stories:

Help Someone By Sharing This Article