Meta Reports $4.5B Metaverse Loss. Meta’s stock (META) surged 7% in off-hours trading ahead of Thursday’s market opening following a robust spring quarter performance. The Facebook parent company exceeded both earnings and revenue expectations, reporting a 73% rise in earnings to $13.5 billion, or $5.16 per share, surpassing estimates of $4.80 per share. Revenue climbed 22% to $39.1 billion, beating analysts’ consensus of $38.3 billion. This was achieved with only a 7% increase in costs, which helped widen the profit margin.

Meta’s daily active users grew 7% year-on-year to 3.3 billion. The company saw a 10% rise in ad impressions and a 10% increase in ad prices on average. Despite these positive trends, Meta’s metaverse unit, Reality Labs, reported a loss of $4.5 billion for the three months ending in June. This adds to the staggering $50 billion in total losses since the unit was launched in 2020. However, CEO Mark Zuckerberg remains optimistic about the future of the metaverse.

“The big theme right now is, of course, AI,” Zuckerberg stated during the earnings call. He emphasized that AI enhancements across Meta’s platforms, including Instagram, WhatsApp, and Facebook, are driving increased engagement. Zuckerberg defended the company’s substantial investment in AI, which he believes is crucial for long-term growth and success.

Meta’s shares have risen 37% this year, further boosted by the company’s strong quarterly performance. The market remains optimistic about Meta’s future, driven by its advancements in AI and its continued dominance in the social media landscape. Meta Reports $4.5B Metaverse Loss.

As the tech giant continues to innovate and expand its offerings, investors are hopeful that Meta’s strategic focus on AI will offset the significant losses from its ambitious metaverse project. With Zuckerberg at the helm, Meta is poised to navigate these challenges and capitalize on new opportunities in the ever-evolving tech industry.