At a Glance:
- Meta plans to unveil the results of its AR & VR hardware unit-Reality Labs for the first time.
- The company is highly investing in engineers & VR gaming Studios to further strengthen the metaverse.
- Meta estimated the expenses to reach $91 billion-$97 billion in 2022.
Facebook renamed the company Meta Platforms Inc., with a vision to help people connect through digital avatars or teleport to visit places. This triggered the metaverse popularity amongst the investors.
Meta’s Q4 results will be out soon that will give us a peek into the financial impact of metaverse vision on the company.
Reality Labs, the AR-VR hardware unit of Meta will break the results for the first time.
Meta strengthening the metaverse
Meta is hiring engineers and bringing multiple VR gaming studios to further strengthen the metaverse. Mark Zuckerberg is optimistic about the futuristic concept that amalgamates virtual realms that can be accessed through different devices.
Meta’s core digital advertising business can face significant uncertainty in Q4. Being one of the second-largest digital ad platforms Apple privacy changes remain a concern. Apple’s privacy changes have made it difficult for brands to use Meta’s social media services.
All these have affected Meta’s earning expectations. Apple tracking changes have already negatively impacted the September quarter for Facebook.
In 2020, Meta reported revenue of $86 billion but did not explain how the metaverse will make a profit. Also, in November it hinted towards potential opportunities for brands where they can set mixed reality events immersive shops.
Meta has an estimated revenue of $33.38 billion, surging 18.9% year-over-year, and the post quarterly earnings per share of $3.84, a slim decline. The company expects expenses to come in at $70 billion-$71 billion and reach $91 billion-$97 billion by 2022.