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Investors Punish Mark Zuckerberg As Costly Metaverse Pitch Falls Flat
Wall Street losing patience on Mark Zuckerberg's bets on his metaverse project Wall Street is losing patience over Meta boss Mark Zuckerberg's enormous and experimental bets on his metaverse project that helped drive up the company's overall costs by a fifth in the third quarter. Analysts on Wednesday called them "confusing and confounding" and Meta's inability to cut costs "extremely disturbing". On a post-earnings conference call, Jefferies analyst Brent Thill asked executives: "I think kind of summing up how investors are feeling right now is that there are just too many experimental bets versus proven bets on the core...I think everyone would love to hear why you think this pays off." In the July-September quarter, losses at Reality Labs ballooned to a whopping $3.67 billion from $2.63 billion a year earlier. He spoke about the company's various efforts, including a recently unveiled virtual and mixed reality headset called Quest Pro that is priced at $1,500 and a social metaverse platform where people can express themselves via avatars. At a time when other tech companies such as Microsoft and Google-parent Alphabet are cutting jobs or slowing hiring, Meta's headcount surged 32 per cent in the third quarter from the end of the second. Source: NDTV #MarkZuckerberg
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