Metaverse Will Result in ‘Significant’ Loss in the Short Term: Mark Zuckerberg

Share Article
In Brief
  • Zuckerberg expects Meta to lose a lot of money over the next five years.

  • The company believes that the metaverse has a lot of potential and that it will pay off in the long run.

  • Meta has launched several strategies to build its metaverse and remains optimistic about it.

  • promo

    Deposit and make your first trade for up to $3,000 in rewards Get Started Now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Meta CEO Mark Zuckerberg said during a shareholder meeting that the company is expected to lose a significant amount of money on the metaverse in the short term. In the meantime, it will hope for revenue growth from Instagram Reels.

Meta’s metaverse play will result in a “significant” loss in the short term, according to CEO Mark Zuckerberg, who made the statement during a shareholder meeting on May 26. Zuckerberg said that will be lucrative in the long run, and that the company’s revenue growth will come from its Instagram Reels for the moment.

Zuckerberg believes that the metaverse strategy may result in these losses for up to five years, which will certainly weigh on the company’s stock. The Meta stock price has suffered a precipitous drop in 2022, down 43.4% year to date. The social media giant remains optimistic about the metaverse, despite its Q1 financial report for 2022 being middling.

Meta is doubling down on its metaverse efforts by developing multiple projects. It is also keen on hardware devices, which will play a central role in the metaverse, as users can experience it through VR. It set up its first hardware store in April 2022 to allow users to test hardware.

One of the biggest features is crypto and payments itself, as the company has launched currency for use in its Horizon Worlds VR application. The signs are well and truly clear that Meta wants to dominate the metaverse.

Meta’s laser-focused target on the metaverse

Meta has pivoted heavily towards the metaverse, aiming to be the top platform for its virtual experiences. This change comes as Facebook has difficulty maintaining growth, and Instagram is facing strong competition from the likes of TikTok.

The changing landscape of social experiences is best tackled with VR and AR experiences, and Meta feels that it can pounce on the opportunity. However, as it has been noted before, the effort comes at a cost — billions have been poured into the metaverse and Meta has had to scale back.

It’s not just the full metaverse experience that Meta has been keen on. The company is also focusing on working NFTs into Instagram, such that users can implement NFT collectibles into their profiles. These NFT features are expected in the near term, Zuckerberg said in March 2022. Facebook will also have NFT features.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Rahul's cryptocurrency journey first began in 2014. With a postgraduate degree in finance, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has guided a number of startups to navigate the complex digital marketing and media outreach landscapes. His work has even influenced distinguished cryptocurrency exchanges and DeFi platforms worth millions of dollars.

Follow Author

Make your first deposit and trade now to earn up to $3,000 in rewards!      

Join

UUEX airdrop: Sign up to get 50 USDT, you can Withdraw to Wallet

Sign up

Poloniex Space Traveller Program: Sign up to get 30 USDT.

Get now