Meta’s stock is already down over 20% in pre-market trading after the company reported a loss of $10.2 billion on its newly founded Facebook Reality Labs (FRL) business, which includes its augmented and virtual reality operations, in its Q4 2021 financial report.
Meta stated in Q3 2021 that for the first time, it would break out results for its new division to illustrate the performance and investments in a group that it thinks critical to the next generation of online social interactions. Because of Mark Zuckerberg’s viewpoint, the company renamed itself Meta Platforms in October to underscore the metaverse’s relevance to the company’s future.
According to an article, the new division made $2.27 billion in sales in 2021, accounting for 1.96 percent of the $116 billion in income earned by Meta’s family of apps, which includes Facebook, Instagram, and WhatsApp. FRL also reported a $3.3 billion loss on $877 million in revenue in the fourth quarter. In the third quarter, the company lost $2.6 billion on $558 million in revenue.