(PatriotWise.com)- Facebook has been investing billions into Mark Zuckerberg’s creepy vision to develop a virtual “metaverse” world. This despite the fact that Facebook recently reported that its primary source of revenue, namely ad sales, is facing “significant uncertainty.”
The social media company reported its third-quarter profits up 17 percent. However, that was below market expectations.
David Wehner, Facebook’s CFO, said the company expected its investment in Facebook Reality Labs would reduce overall operating profit in 2021 by about ten billion dollars. This significant investment is all about Facebook’s “metaverse” ambitions.
CEO Mark Zuckerberg recently said that in the coming years, Facebook will no longer be viewed as a social media company, but as a company focused on his creepy “metaverse.” To that end, the company has invested heavily in virtual reality (VR) and augmented reality (AR), including purchasing companies like Oculus. And this year it created a product team to work exclusively on the metaverse.
Earlier this month, Facebook announced plans to hire 10,000 employees in Europe over the next five years to work on Zuckerberg’s creepy vision.
Zuckerberg concedes that in the near term, the billions invested in his “metaverse” vision is not going to be profitable for Facebook. But he’s betting big because he believes that the “metaverse” will become the successor to the internet.
Beginning in the fourth quarter of 2021, CFO Wehner said the company would break out Facebook Reality Labs as a separate reporting segment from Facebook’s family of apps.
Facebook, whose shares so far this year have gained about 20 percent, is just $85 billion away from regaining a spot on the $1 trillion club – joining the latest entrant, Tesla, Inc.
The social media giant’s total revenue, which consists primarily of ad sales, rose to $29.01 billion in the third quarter from $21.47 billion a year earlier. However, this increase was off from the $29.57 billion analysts had predicted. The company said Facebook’s advertisers were affected by the global supply chain disruptions and labor shortages, driving down advertising demand across a range of sectors and regions.