The metaverse could be a significant part of the social-network operator's business in the second half of the decade, according to the CEO.
We want to get to around a billion people in the metaverse doing hundreds of dollars of commerce, each buying digital goods, digital content, different things to express themselves, so whether that's clothing for their avatar or different digital goods for their virtual home or things to decorate their virtual home
The number of daily active users declined for the first time between the last two quarters, and investors have cut the company's market cap in half. The next generation of content is a virtual world where people can buy and sell digital clothes and other goods for other people who can communicate with one another, according to the company's founder and CEO. The company's ticker symbol was changed from a relic of its history as a social media provider to a new one.
The company invested in virtual reality and augmented reality after paying $2 billion for the company. The shipments of headsets have fallen short of the shipments of PCs and phones. The current- generation Meta Quest 2 starts at $299 and is said to be doing well.
The founder and CEO of Facebook told the host that the second edition of the game had been a hit.
I have been very pleased with how that has gone. I expected it to exceed my expectations. It will take some time for it to reach the scale of hundreds of millions or billions of people in the metaverse. That is the northern star. We will get there. The other services that we run are at a bigger scale.
A big theme for Meta over the next decade will be experiences in the metaverse that are more immersive than text, photos or videos.
The two met in the metaverse Even if people are not physically on the other side of the country, the experience can foster a sense of togetherness. He said it is possible to make eye contact, which isn't guaranteed on video calls, and use spatial audio that allows for quieter side conversations.
He said the technology adds up to delivering a realistic sense of presence.
Meta will need a stack of hardware, software and experiences to bring that to customers.
He said that the company could afford to make long-term research investments.
The economy around the metaverse is expected to be massive.
Meta Platforms had 3.64 billion monthly active people in the first quarter, up 6 percent from a year ago. In 2020, the messaging service reached 2 billion users, and it has the potential to grow even more.
Over time, we have built services, tried to serve as many people as possible, and then we scale the monetization after that. We have done that with social media. Business messaging and commerce is going to be a big thing in the future.
Meta is investing heavily in the development of artificial intelligence, which can bolster advertising and the company's existing applications.
Over time, having more and more of that content just come from artificial intelligence recommendations, as we shift from having most of the content that you see in Facebook andInstagram come from your friend or follow graph, to now. You get access to the whole universe of content that is out there, not just the content from the people who you follow, but the whole universe of content that's out there.
It is a concept that TikTok used to propel itself to a billion active users. Meta wanted to respond to the rapid growth with the introduction of the Reels feature of its app. On Meta's first-quarter earnings call in April, Facebook's CEO said that Reels makes up over 20% of the time people spend on the photo-sharing site. He thinks that Reels will be more compelling to the users.
He said that the system can choose based on what it knows about you and what you want to know. Improvements to the models are shipped every week by our engineers. relevance goes up by a small amount when we check something. Next week, we do that again. Getting the speed to be very quick is a huge part of what I have always focused on in running this company.
Jonathan Vanian was a contributor.
If you join the CNBC Investing Club, you will get to follow Jim Cramer on a daily basis.
There are questions for Cramer. 1-800-743-CNBC.
Do you want to learn more about Cramer? Don't hit him! Jim Cramer is on social media.
Suggestions, questions, and comments for the website? madcap@cnbc.com
All Rights Reserved © 2024
