The CEO of Meta, Mark Zuckerberg, revealed in a shareholder meeting that Meta would experience a significant loss in the near term. According to Zuckerberg, moving to the Metaverse will lead to a short-term loss for Meta.
However, the Metaverse is a lucrative venture that the company hopes to benefit from in the long run.
Meanwhile, Meta hopes to generate revenue from the Instagram Reels it has developed and implemented.
Metaverse Strategy is Financially Worthy
According to the CEO of Meta, the Metaverse journey would be bumpy and could result in losses for the company. The loss will weigh on the company’s revenue and could last for close to five years. Meta’s stock has significantly declined in 2022, down by 43.4%.
Despite the slump, the social media giant remains confident in revenue turnaround for the company. And the Metaverse will play a leading role in the company’s market recovery. Moreover, the 2022 Q1 report for Meta is negative.
Meta is currently putting in effort for its Metaverse drive by developing multiple structures. Many hardware devices are also developed for the virtual reality (VR) and artificial reality (AR) experience in the Metaverse.
Meta set up its first hardware store last month, where users are allowed to test the newly developed hardware. An interesting feature of the newly created hardware is integrating cryptocurrency and payments.
The company has already launched a native token in the Horizon Worlds virtual reality application. Meta wants to be the leading player in the Metaverse, and the signs are clear enough.
Meta’s Focus is on the Metaverse
Meta has invested huge resources into its Metaverse project as it looks to make it its top platform for a virtual experience. The shift in focus and direction is due to Facebook’s inability to maintain the expanding growth on the platform.
On the other hand, TikTok presents a strong competition for Instagram as the market evolves. Meanwhile, the company’s change of name from Facebook to Meta is the first step toward moving to the virtual ecosystem.
The social media landscape is rapidly changing, and enhancing the social experiences is through the adoption of AR and VR. And Meta believes it can use the opportunity to take a grip on the market before others.
However, this comes at a huge financial cost. The company previously spoke on the cost involved and, as a result, has plunged billions of dollars into the Metaverse. Meta is poised to scale the virtual space as it prepares to put on more effort.
It is worth noting that Meta is not just for the full virtual experience. The social media giant is keen on adding NFTs to Instagram to allow users to implement NFT collections on their profiles.
It is not yet clear when the NFT features will be ready for launch, but insiders believe they will be ready in the near term. On March 20, the Meta CEO revealed that Meta would also integrate Facebook with NFT features.
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