The CEO of Meta addressed his doubters at the end of the earnings call.
I think this is going to be a very important thing, even though a lot of people might not agree with it. The importance of the work being done here will be talked about in a decade's time.
The importance of the work being done here will be talked about in a decade's time.
It's a long time from now. On the earnings call, he lost loyal supporters quickly. One analyst said on the call that investors feel like there are too many experimental bets.
This year, Meta's Reality Labs division has lost $9.4 billion. The company made only $285 million in revenue for the quarter, a nearly 50 percent drop, due to weaker sales of the Quest 2 headset that got a $100 price hike in August. The next version of that headset is currently planned for release in the second half of next year.
Just a few days after a large shareholder publicly pressured the company to rein in its spending, Meta said in its earnings press release that Reality Labs operating losses will grow significantly over the next few years.
After it reported a 4% drop in revenue growth, Meta's stock plummeted 20 percent. Apple's ad tracking prompt has cost it over $10 billion, advertising spending on its platform is continuing to weaken, and its stock is currently trading at a price not seen since 2015.
Today, he tried to give investors reasons to be optimistic. There are more daily users on Facebook. The two messaging services have over 2 billion users, with the latter just starting a marketing push in the US that takes aim at the popular messaging service. The company believes it is gaining time spent share on competitors like TikTok.
This could be another painful moment of transition like the shift from desktop to mobile or the introduction of Stories. He is in a state of crisis of confidence.
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