- Meta Platforms, Inc (NASDAQ:META) went ahead with earmarking 20% of its overall costs and expenses to Reality Labs in 2023 despite concerns over the business division focused on augmented and virtual reality and the so-called metaverse.
- CTO Andrew Bosworth’s projection remained unchanged from the 18% of spending Meta devoted to Reality Labs in the third quarter, Bloomberg reports.
- The investment also indicated that most of Meta’s investments would back its “family of apps” Facebook, Instagram, WhatsApp, and Messenger.
- Also Read: Meta Loses Crucial Metaverse Pioneer Over Creative Disagreement With Mark Zuckerberg
- Reality Labs reported a loss from operations of $(9.4) billion through the first nine months of the year, and Meta’s family of apps generated $32 billion in profit during that same period.
- Despite macro headwinds coupled with pressures on Meta’s core business, pulling back on future bets to focus on short-term goals alone can have disastrous consequences, Bosworth said.
- A 20% investment in futuristic technologies is a “level of investment we believe makes sense for a company committed to staying at the leading edge of one of the most competitive and innovative industries on earth,” he said.
- In an open letter to Meta and CEO Mark Zuckerberg, Altimeter Capital Chair and CEO Brad Gerstner complained about its excess employees.
- Gerstner suggested Meta slash headcount expenses by 20% and limit its pricey investments in “metaverse” technology to no more than $5 billion annually.
- Price Action: META shares traded lower by 2.50% at $116.45 on the last check Monday.
Warren Buffett-Backed BYD Unveils Stock Buyback And Luxury Car Production Expansion Amid Market Challenges
BYD Co Ltd (OTC:BYDDF) (OTC:BYDDY), a Chinese electric vehicle (EV) manufacturer, has announced a new stock buyback plan and…
