WhatsApp On Brink Of Monetization, Mark Zuckerberg Says, Offers More Clarity On Metaverse Expenditure

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    Meta Platforms Co., Ltd. (NASDAQ: meta) CEO Mark Zuckerberg told employees WhatsApp and Messenger would drive the company's next wave of revenue growth, allaying concerns about Meta's finances after the first mass layoffs.

    Zuckerberg answered pointed questions at an all-hands meeting a week after Meta. announced that 11,000 workers would be laid off.

    He said the two messaging apps are “in a very early stage of monetization” compared to advertising giants Facebook and Instagram, according to Reuters. report.

    “We often talk about very long-term opportunities like the Metaverse, but the reality is that business messaging is probably the next big pillar of our business as we work to further monetize WhatsApp and Messenger. It will happen,” he said.

    Meta allows some consumers to talk to and transact with merchants through a chat app, including a new feature announced in Brazil.

    Mr. Zuckerberg downplayed how much the company spent on a division called Reality Labs. Responsible for investing in Metaverse.

    He said Meta's most important expense was personnel, followed by capital expenditures, with the majority going to infrastructure to support its suite of social media apps. Approximately 20% Meta's budget was to be donated to Reality Labs.

    Within Reality Labs, the department is spending more than half of its budget on augmented reality, with a flurry of smart glasses products coming out “over the next few years” and some “really cool” AR products in the second half of the decade. Glass is here, Zuckerberg said.

    About 40% of Reality Labs' budget went toward virtual reality, and about 10% went toward a futuristic social platform like virtual world called Horizon.

    Andrew Bosworth, chief technology officer who runs Reality Labs, said AR glasses need to be more profitable than mobile phones to appeal to potential customers and customers. Meet a higher bar for attractiveness.

    Bosworth is wary of developing “industrial applications” for these devices, describing them as “niche” and saying he wants to focus on developing them for a broader audience.

    Price action: META stock rose 1.75% premarket to $113.40 on Friday.

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