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For the quarter that ended in June, American company Meta spent $2.81 billion on its Reality Labs virtual reality subsidiary. According to CNBC, such spending demonstrates the company's intention to bring the dominant social media platform into the so-called meta world.
Given that the business generated $8.36 billion in operating profit and $28.82 billion in sales during the reporting quarter, such virtual reality spending is significant but manageable for the business. Amid growing competition from TikTok, Meta also disclosed its first-ever year-over-year revenue decrease and provided a cautious digital advertising projection, according to the WSJ. It reported revenue that was slightly below Wall Street projections ($28.9 billion) and down almost 1% from the prior year.
Meta used the funds to acquire startups and established VR and AR headset manufacturers. The FTC has also filed a lawsuit against the business to stop it from buying the company behind the well-known VR app Supernatural. In the future, CNBC writes, these kinds of deals will be subject to intense regulatory scrutiny. According to the WSJ, Meta's stock gained more than 6% at the close then lost more than 4% in the hours following the report's release.
source: cnbc.com
Given that the business generated $8.36 billion in operating profit and $28.82 billion in sales during the reporting quarter, such virtual reality spending is significant but manageable for the business. Amid growing competition from TikTok, Meta also disclosed its first-ever year-over-year revenue decrease and provided a cautious digital advertising projection, according to the WSJ. It reported revenue that was slightly below Wall Street projections ($28.9 billion) and down almost 1% from the prior year.
Meta used the funds to acquire startups and established VR and AR headset manufacturers. The FTC has also filed a lawsuit against the business to stop it from buying the company behind the well-known VR app Supernatural. In the future, CNBC writes, these kinds of deals will be subject to intense regulatory scrutiny. According to the WSJ, Meta's stock gained more than 6% at the close then lost more than 4% in the hours following the report's release.
source: cnbc.com
