Shulou(Shulou.com)11/24 Report--

Meta, the parent company of Facebook, has spent more than $15 billion on its metacosmos project since the beginning of 2021. But so far, the company has not disclosed exactly where the money was spent, raising concerns among investors and analysts.

Many industry experts worry that Meta's huge spending could eventually go down the drain. "the problem is that although they spend money, they keep secrets from investors, which could lead to a disaster," said Dan Ives, an analyst at Wade Bush Securities.

Mr Ives added: "this is still a high-risk bet for Zuckerberg and his team because, for now, they are betting on the future while their core business faces huge challenges."

In 2021, Meta began to disclose the financial information of the virtual reality division Reality Labs for the first time. At the time, the company revealed that it had invested more than $10 billion in the meta-universe project and saw no sign of the loss coming to an end. The company reported a loss of more than $5 billion in the first six months of 2022. Many analysts predict that the total loss this year will exceed that of last year.

Meta declined to comment, but a company spokesman said Meta would not disclose financial details of the Reality Labs division.

Ives said that so far, Meta's huge investment in the meta-universe project is worrying, especially given the company's recent updates, including the release of a $1500 new VR helmet and a virtual portrait with legs. Mr Ives said the products were "mundane".

Mark Zgutowicz, an analyst at Benchmark, said that while uncertain, he estimated that at least 60 per cent of Reality Labs's losses came from the huge research and development costs needed to build a new virtual world. "until we all wear glasses that don't make us look like aliens, at least from an expandable point of view, there is no real meta-universe," he said. "

However, Zgutovich points out that Meta has good reason to try to build anything. "it's hard for them to go out and buy other unique software companies because they are so tightly regulated that they have to build the technology they need within the company," he said. however, they can increase transparency and clarify how and when they want to be rewarded from the meta-universe project. "

To be sure, Meta is not the only company that refuses to detail losses in some areas, as do other US companies. Ivan Feinseth, a technology analyst at Tigress Financial Partners, says he believes in Mark Zuckerberg's long-term vision and the potential of a meta-universe.

"when Facebook bought Instagram, people laughed at Zuckerberg and thought he was crazy. They said, 'this guy threw away all his money,' and Instagram proved to be one of the best assets ever acquired, not just for Facebook, but for the acquisition community as a whole," Feinster said.

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