Metaverse will result in "significant" short-term losses: Mark Zuckerberg.

AT A SHAREHOLDER MEETING, meta CEO Mark Zuckerberg said that the company is expected to lose a significant amount of money from Metaverse shortly. Meanwhile, he hopes to increase revenue from Instagram Reels.

According to CEO Mark Zuckerberg, who made the remarks at a shareholders' meeting on May 26, the game's meta-universe Meta will result in "significant" losses in the short term. However, Zuckerberg says it will be profitable in the long run, and for now, the company's revenue growth will come from its Instagram Reel.

Zuckerberg believes the metauniverse strategy could result in such losses for up to five years, undoubtedly weighing on the company's stock. As a result, meta's share price has fallen sharply in 2022, down 43.4%. Nevertheless, the social media giant remains bullish on the Metaverse, despite its average financial results for the first quarter of 2022.

Meta has redoubled its efforts for the Metaverse by developing several projects. He is also interested in the hardware that will play a central role in the Metaverse as users can experience it through VR. He opened his first hardware store in April 2022 for users to test the hardware.

One of the most prominent features is cryptocurrencies and payments themselves, as the company has released the currency for use in its Horizon Worlds VR app. The signs are good, and it's evident that Meta wants to dominate the Metaverse.

Meta is very focused on the Metaverse and strives to be the best platform for its virtual experience. This change comes as Facebook struggles to sustain growth and Instagram faces stiff competition from peers like TikTok.

The changing landscape of social experiences is at its best with VR and AR experiences, and Meta believes it can take advantage of the opportunities. However, as mentioned earlier, the effort comes at a price - billions have already been poured into the Metaverse, and the meta needs to be reduced.