Meta shareholders dissatisfied despite record results

Meta shareholders dissatisfied despite record results

Meta Platforms, the company behind Facebook, surprised with an unexpected decline in its share price despite positive quarterly figures. Quarterly revenue increased significantly to $36.46 billion, while profit more than doubled to just under $12.4 billion. Despite impressive figures, shareholders reacted with concern as Meta continues to invest high costs in uncertain business areas such as the Metaverse and VR glasses. This resulted in an operating loss of $3.85 billion in the Reality Labs division alone.

Investors and analysts question the viability of these investments, particularly when it comes to the Metaverse and VR. Mark Zuckerberg, CEO of Meta, defended the long-term strategy and emphasized successes in the advertising business and in AI development. Nevertheless, Meta lowered its revenue forecast for the current quarter and increased expected expenses to $96 billion to $99 billion. Meta's shares have seen a significant decline, although they are still up 24.70 percent since the beginning of the year.

Zuckerberg is trying to reassure shareholders and emphasizes the positive developments in AI technology, particularly with regard to Ray-Ban's smart glasses. Nevertheless, concerns remain about the long-term viability of investing in the metaverse and virtual reality. The future of Meta will largely depend on whether the planned developments in the area of ​​the Metaverse and VR technology can meet the expectations of shareholders.