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Meta’s Reality Labs Reports $3.85B Loss in Q1 2024, META Stock Tumbles 19%

Facebook’s parent company Meta’s move into the Metaverse is still weighing heavy on the company’s pockets as its Reality Labs unit recorded a staggering $3.85 billion in operating losses for Q1 2024. This comes as Meta Platforms Inc (NASDAQ: META) has also been facing increasing competition from giants like Apple in the virtual reality market.

During Q1, the Metaverse division reported a revenue of $440 million, up by nearly 30% from the last year. However, it represents only 1% of Meta’s total sales in the first quarter. Analysts, however, expected the operating loss at $4.31 billion with sales of $512.5 million for Q1 2024.

Since the end of 2020, the total losses reported by Reality Labs stood upwards of $45 billion, when Meta started reporting this business division separately for the first time.

Meta chief Mark Zuckerberg is quite bullish on metaverse referring to it as the “next frontier”. However, at least for now, developing this metaverse technology seems to be a costly effort. Furthermore, Meta is also flexing its muscles to combat competition for its Quest V3 headsets, coming from the Apple Vision Pro.

Earlier this week on Monday, Meta re...