Meta reported earnings of $28.82 trillion and earnings per share at $2.46. Both are below the estimates. Reality Labs, the metaverse division of Meta, suffered losses of $2.8 Billion for the quarter.
Meta reported losses in the amount of $2.8 billion to its metaverse-focused division Reality Labs. The firm failed to report earnings and revenue for the quarter.
According to Nasdaq data, the tech giant’s shares fell as high as 5% in after hours trading on Wednesday, immediately following earnings. However, it then pared losses.
Reality Labs, its metaverse division, reported earnings in the fourth quarter of $452million, down from $695million in the first quarter. In the first quarter 2022, the division suffered a loss of $2.9 billion.
The company’s overall performance was below expectations. Total revenue for the second quarter 2022 came in at $28.82 Billion, below the estimates of $28.9 Billion. Below estimates of $2.54, earnings per share were $2.46.
Meta was faced more headwinds Wednesday when the Federal Trade Commission filed an action against Facebook. The suit alleges that the company is trying to dominate the entire metaverse.
In a weekly Q&A, Zuckerberg told employees that he believes that the economy is heading for one of “the worst downturns we’ve ever seen in recent history.” After stating that certain people shouldn’t be at the company, the long-serving CEO said that the firm was increasing expectations to raise the heat on its employees.
