Meta is still burning money on AR/VR
Meta reported another $4 billion loss in its Reality Labs division, continuing a trend that has resulted in $83.5 billion in cumulative losses since 2021. Despite strong overall earnings, the company's massive spending on AI and infrastructure has raised investor concerns. Meta's stock dropped over 5% in after-hours trading following its earnings call.
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When Meta released its quarterly earnings report on Wednesday evening, a colleague pointed out how Meta lost $4 billion on Reality Labs, the division responsible for its AR glasses, VR headsets, and VR software. I yawned at first. Meta losing $4 billion on Reality Labs just didn’t seem surprising. It’s a given. Reality Labs lost another $4 billion, and also, the sky is blue. Then I realized, that itself is notable — for Meta, losses on this unit are quite literally average behavior. Over its last 21 quarterly earnings reports, dating back to 2021, Meta has lost a total of $83.5 billion on Reality Labs, which comes out to an average of about $4 billion in losses each quarter.
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