META, commonly known as Facebook, has just reported quarterly results and investors have turned their backs on it again with a drop of more than 13%. So far this year, the social network founded by Mark Zuckerberg has accumulated a drop of 70%, which translates into nearly 700,000 million dollars. The metaverse is still a money-burning machine with no apparent results.
New setback in the markets after the quarterly report of results of META. On a financial level, the company’s sales have reached 27.71B dollars, slightly exceeding the forecasts of analysts who estimated that they would be 27.41B. Earnings per share were worse than expected at just $1.64 while the market expected it to be at least $1.9. After the presentation of results, the shares have plummeted more than 12% and the fact is that future forecasts have not been positive at all.
According to him company CEO “META is facing short-term revenue challenges, the fundamentals are there to return to stronger revenue growth.” For his part, the Financial Director has said that they will begin to control the number of employees so that at the end of 2023 it is similar to that of this quarter. Like Google, META has increased its workforce in recent months, substantially increasing costs in a context of great uncertainty.
The metaverse is a wreck
More than 9,400 million dollars have been allocated to the new virtual world in the first nine months of the year, also increasing with respect to the previous year. Reality is horizon worlds, META’s virtual reality video game is still an immature project that is not even capable of attracting the company’s own employees in their spare time.
We are talking about a metaverse that has as a barrier to entry the purchase of glasses valued at 400 euros and that has little or no utility level. Not even avatars have legs.
Going back to the numbers, cash generation has deteriorated as can be seen in the following image and the only good news is that the number of active users remains solid, reaching almost 2,000 million
According to José Javier González, partner of BolsaZone.com“The results have been very bad. There is no where to catch them. Mark has embarked on this crusade through the Metaverse that is causing the company to spend a lot of money and spend a lot of money in the midst of a standstill in ad revenue. This is no longer a company growing in sales and growing profits and each quarter is getting worse. Who believes that this will turn around one day and that all those users and applications will bring new sales and profits, can trust; an investor seeking serenity had better look the other way. «