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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/meta-faces-major-metaverse-losses" data-wpel-link="internal" rel="noopener noreferrer nofollow">Meta Faces Major Metaverse Losses</a><br></p>
<p style="text-align: justify">Meta Platforms, led by Mark Zuckerberg, has reported significant financial setbacks in its metaverse division, Reality Labs. The company announced a loss of $4.5 billion in the second quarter of this year, pushing the total loss for its metaverse ventures to nearly $60 billion since 2019. Despite these losses, Meta recorded $49 billion in revenue for the quarter, marking a 22% increase from the same period last year.</p>
<h2 id="why-is-meta-focusing-on-ai">Why Is Meta Focusing on AI?</h2>
<p style="text-align: justify">In contrast to the losses in its metaverse division, Meta reported a substantial profit of $13.5 billion, largely attributed to <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">advancements in artificial intelligence</a>. Zuckerberg pointed to the growth of applications such as Threads and WhatsApp as key contributors. The company’s stock surged by 7.1% in after-hours trading, exceeding analysts’ expectations.</p>
<p style="text-align: justify">Zuckerberg highlighted the impressive trajectory of Meta AI, their assistant, which is set to become the most used AI assistant globally by the end of 2024. The AI-powered Ray-Ban Meta smart glasses, launched last September, also showed promising sales momentum.</p>
<h2 id="what-are-the-details-on-reality-labs">What Are the Details on Reality Labs?</h2>
<p style="text-align: justify">Reality Labs, Meta’s metaverse research arm, earned $353 million in second-quarter sales but still posted substantial losses. Since its creation in 2019, the division has accumulated a total loss of $59.9 billion. Despite these ongoing deficits, Meta plans to boost capital expenditures in 2025, focusing more on AI research and development.</p>
<h2 id="key-insights-from-meta-s-strategy">Key Insights from Meta’s Strategy</h2>
<p style="text-align: justify">– Despite heavy losses in the metaverse, Meta’s AI advancements are yielding significant profits.<br> – The company plans to increase capital expenditures in AI research and development.<br> – Young users are increasingly using Facebook Marketplace, contrary to popular belief about the platform’s demographic.</p>
<p style="text-align: justify">Looking ahead, Meta’s CFO Susan Li acknowledged that the operating losses for Reality Labs are expected to rise year-over-year. This increase is attributed to ongoing product development in augmented and virtual reality, as well as further <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investments</a> in building the metaverse ecosystem.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/meta-faces-major-metaverse-losses" data-wpel-link="internal" rel="noopener noreferrer nofollow">Meta Faces Major Metaverse Losses</a></h5>

Meta Faces Major Metaverse Losses

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