- Mark Zuckerberg’s Meta has recorded nearly $50 billion in Metaverse losses in less than five years.
- Total losses for the division were $47 billion, more than the market value of Ford, Hershey and Kraft Heinz.
- Nike’s Phil Knight, Nvidia’s Jensen Huang, and Citadel’s Ken Griffin all have low value on paper.
Mark Zuckerberg’s meta has racked up nearly $50 billion in total Metaverse losses, an amount that dwarfs the market value of many famous companies and the fortunes of some of the world’s wealthiest people.
The Facebook, Instagram and WhatsApp owner has lost a total of $47 billion in its Reality Labs division since the beginning of 2019, an insider analysis of regulatory filings found. The sector’s operating losses ballooned from less than $5 billion in 2019 to more than $10 billion in 2021, nearly $14 billion in 2022, and more than $11 billion in the first nine months of this year. .
Zuckerberg and his team fully expect this trend to continue. “We expect our RL operating loss to increase significantly in 2024,” they said in the Meta article. 3rd quarter earnings. “Many of our RL investments are in long-term, cutting-edge research and development of products for the Metaverse, and are likely to be fully realized within the next decade.”
To date, Meta’s Metaverse losses have exceeded the market value of Ford ($45 billion), Keurig Dr. Pepper ($41 billion), Hershey ($39 billion), Kraft Heinz ($39 billion), and many other large companies. exceeds the total amount. They could soon surpass the size of Lululemon ($49 billion), Chipotle ($50 billion), Target ($51 billion) and Monster Beverages ($52 billion).
If Mehta’s $47 billion figure were an individual’s net worth, it would place him in the top 25 of the world rankings. Bloomberg Billionaires Index, Nike co-founder Phil Knight and his family ($39 billion), Nvidia CEO Jensen Huang ($36 billion), and Citadel CEO Ken Griffin ($35 billion). Their value would be almost half that of Mr. Zuckerberg ($105 billion).
It’s worth emphasizing that the Metaverse business is still a small part of the whole Meta. Zuckerberg’s company generated $94 billion in revenue and $42 billion in operating profit from its flagship “Family of Apps” division in the nine months to September, compared with revenue from its RL business. Less than $1 billion, with a loss of less than $11.5 billion. As a result, Meta still generated a total operating profit of over $30 billion during this period.
Zuckerberg has long championed virtual reality, augmented reality, and other metaverse-related technologies. When his company first acquired his VR pioneer, Oculus, in 2014, his vision was for everyone around the world to be courtside at an NBA game, on stage at a Taylor Swift concert. It felt like you were sitting on the side, or in the front row of a Harvard lecture. .
It’s unclear whether Zuckerberg’s big bet on the metaverse will ultimately pay off, but meta losses in this space are certainly significant and look like they will continue to grow for years to come.