Published , by Ozzie Mejia
Published , by Ozzie Mejia
A consistent trend over the past several financial quarters for Meta has been continued losses from its Reality Labs division. The Facebook parent company's latest quarterly earnings released on Wednesday and one of its biggest losses has once again come from the VR/AR division. This time, the losses are in the neighborhood of $3.742 billion USD.
"For Reality Labs, we expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem," reads the Meta Q3 2023 earnings report.
The latest loss figure from Reality Labs continues the trend from the $3.7 billion loss in Q2 2023 and $3.99 billion in Q1 2023. Wednesday's statement echoes Meta's statement from earlier this year that Reality Labs would continue losing money well into the future. The division already saw substantial layoffs in November 2022 and in March 2023. All of this stems from a combination of factors, but mainly from heavy investments in the Metaverse and virtual reality that haven't panned out yet.
Meta (META) stock finished the day down $13.02, but has recovered slightly in after hours trading. Even with the heavy losses from Reality Labs, Facebook reported an overall positive quarter, beating EPS and revenue estimates. We'll learn more from Wednesday's Facebook (META) Q3 2023 earnings call. If any further news breaks out, we'll report on it here at Shacknews.