![]() ![]() Shares plummeted more than 20% in late trading after Meta missed profit estimates, thanks in part to those Reality Labs losses. That's more than enough time for Meta to pivot to a new strategy as it looks for new sources of growth.īut even Meta's core business disappointed on Wednesday. Executives have already said it could take up to 15 years to fully realize their vision. Plus, Meta could have a decade or more to pull it off before investors get impatient. On Wednesday, Wolfe Research analyst Deepak Mathivanan increased the price target for Meta stock to 330 from 300 and reiterated a Buy rating. It effectively has unlimited amounts of money to spend on these projects, unlike smaller metaverse rivals such as Roblox or Epic Games. Reality Labs' financials also show Meta's advantage in building the metaverse. The questions now become: What is Meta spending all that money on? And when does the spending spree stop? The company's CFO attributed $4.2 billion of the losses to employee costs, research and development, and costs of items sold. Alphabet's Other Bets segment, which includes all those wild projects such as self-driving cars and health-care technology, lost about half that, $1.45 billion, during the same period. This was more or less tick for tick with the Nasdaq (QQQ) performance while significantly ahead of the S&P 500 (SPY). Let's really put that in context: Reality Labs lost $3.3 billion in the fourth quarter of last year. Meta stock rallied over 100 to the high point in September 2021. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Meta’s Reality Labs unit, which is responsible for developing the virtual reality and related augmented reality technology that underpins its plans for the metaverse, has lost 9.4 billion so far. company, after the social media giant issued a dismal. "With Meta making progress with Reels while AI improves recommendations across content and advertising, we expect growth to rebound from current levels while the company is more disciplined in its cost structure," they wrote in a Thursday note.Best Debt Consolidation Loans for Bad Credit Feb 3 (Reuters) - Shares of Facebook owner Meta (FB.O) plummeted 26 on Thursday, the biggest single-day slide in market value for a U.S. Its shares fell 26.4 after quarterly figures. Still, analysts from JMP are optimistic about the future of Reels. Facebook's owner Meta Platforms saw its stock market value slump by more than 230bn (169bn) on Thursday, in a record daily loss for a US firm. "Given the magnitude of product changes underway, we think investors need to hear an unambiguous and material improvement in time spent to get comfortable." "The Reels monetization ramp seems slow," UBS' Lloyd Walmsley said in a note to investors. However, the product doesn't generate money as efficiently as Instagram Stories and the main news feed. Zuckerberg has been pushing into short videos by investing in Reels, which reached $1 billion in annualized revenue. Meta said in February that Apple's App tracking transparency feature will result in a $10 billion revenue hit this year. ![]() "This is a period that demands more intensity and I expect us to get more done with fewer resources," Zuckerberg said. He added that the "economic downturn will have a broad impact on the digital advertising business," which has already been hit by Apple's privacy changes. Personal Loans for 580 Credit Score or Lower ![]() Best Debt Consolidation Loans for Bad Credit ![]()
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