Meta’s shares tumbled 25 percent.
Investors don’t seem happy with the company’s CEO Mark Zuckerberg’s metaverse strategy.
Decline in Meta’s Stocks
The stock drop put the company’s total market value below $265 billion. Last year, the value was over $1 trillion.
Shares of Meta fell dramatically after metaverse division Reality Labs announced a third-quarter loss of $3.7 billion. Total losses for Reality Labs this year amounted to $9.4 billion, the company reported on its balance sheet.
Meeting with analysts on an earnings call, Zuckerberg assured investors that his current strategy will pay off in the long run.
“Look, I understand that a lot of people might not agree with this metaverse. But I think it will be something very important for the future.
I believe it would be a mistake to focus on any of these areas that I think could be fundamentally important for the future.”
Despite the loss from Reality Labs, the company continues to profit from its main platforms Facebook and Instagram.
Investors have voiced their fears openly, urging Zuckerberg to limit his metaverse spending.
