Despite the stock's 20% drop, Zuckerberg remains confident in his Metaverse plans

According to analysts, the company's total metaverse spending will exceed $60 billion.

Zuckerberg Still ‘Confident’ In Metaverse Plans Despite Stock’s 20% Slide
Zuckerberg founder of Meta | Image: CNBC

Facebook parent Meta revealed a loss of more than $10 billion from the company's first explorations into the metaverse in an earnings call that fell short of Wall Street estimates.

According to the company's accounting, the spending, which was channeled through Meta's newly formed Reality Labs Division, resulted to an 8% drop in quarterly earnings.

Investors should be aware of future "headwinds from both rising competition for people's time and a shift in engagement," according to the social media behemoth.

CEO Mark Zuckerberg stated the company's "road ahead is not completely defined" in terms of Meta's Web3 efforts, but he's "confident" in the enormous investment in the nascent field.

The rising costs, on the other hand, may only be the beginning, with analysts estimating that the social media behemoth will spend at least $60 billion to realize its whole metaverse goal.

In the company's first earnings report since rebranding from Facebook to Meta, Zuckerberg also stated that a "high-end" virtual reality headset will be released by the end of the year.

Reality Labs generated $2.3 billion in revenue for Meta in 2021. Daily active users, a key growth statistic for social media businesses, came up at 1.93 billion, matching analyst projections of 1.95 billion.

Previously, Zuckerberg stated that the company's investments in the space would be focused on virtual and augmented reality.

In addition, Facebook and Instagram have recently been linked to non-fungible token integrations (NFTs).

Meta has contemplated introducing an NFT marketplace, as well as allowing users to showcase NFTs on their accounts, according to two persons familiar with the topic.

After hours, the company's stock dropped more than 20% to around $249 per share. Year to date, it has lost about 4% of its value.