Meta faces $17.7B loss in Reality Labs but eyes 2025
Meta Platforms' Reality Labs division reported significant financial losses, with operating losses reaching $17.7 billion for the year 2024, marking a 10% increase from the previous year.
This brings the total losses for Reality Labs to over $60 billion since 2020.
Despite these figures, CEO Mark Zuckerberg remains optimistic, declaring that 2025 will be a "pivotal year" for the metaverse.
In the fourth quarter of 2024 alone, Reality Labs incurred an operating loss of $4.97 billion, generating just over $1 billion in revenue.
Zuckerberg emphasised that user engagement with augmented reality hardware is growing steadily, which he believes will support future developments.
"This is a year when a number of the long-term investments that we’ve been working on... will really start to land,” he stated during an earnings call.
Reality Labs focuses on creating virtual and augmented reality technologies, including Quest VR headsets and Horizon metaverse experiences.
The division's losses have raised concerns among investors about the sustainability of Meta's metaverse strategy.
However, Meta's overall financial performance exceeded expectations, with total revenues for Q4 rising by 21% to $48.4 billion.
Advertising revenue remains the primary source of income for Meta, contributing significantly to its financial stability despite Reality Labs' struggles.
Zuckerberg also announced plans to invest between $60 billion and $65 billion in artificial intelligence initiatives, which he views as integral to enhancing metaverse capabilities.
He expressed confidence that AI will play a crucial role in reaching more than one billion users with personalised AI assistants this year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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