Meta bullish on AI, reports losses in Metaverse arm- Q1 reports
Meta formerly known as Facebook Q1 reports shows a nearly $4 billion loss from Reality Labs which houses augmented and virtual reality (Metaverse) related consumer products. Reality Labs however had a $339 million sales profit. Overall, according to Meta founder and CEO Mark Zuckerberg, the firm had a good quarter continuity growing community.
The firm reported a $28.6 billion quarterly revenue and $2.20 earnings per share against consensus analyst estimates of $27.7 billion and $2.02.
Having reported a $3.99 billion operating loss for Q1 2023, Zuckerberg expressed that Reality Labs is likely to suffer more losses in the remaining 2023. We continue to expect Reality Labs operating losses to increase year-over-year in 2023,” he said.
Despite a Metaverse downturn for Meta, its AI initiatives seem to thrive. Zuckerberg states in the report that Meta’s AI work is driving good results across their apps and business. “We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision,” he added.
In a recent publication, Zuckerberg mentioned that advancing AI is the firm’s single largest investment as well as integrating it into each of its products. He commented that, though building the metaverse “remains central to defining the future of social connection,” Meta won’t be channeling most of its capital into it.
Following the Q1 report, the CEO in a conference call outlined how AI will be having a positive impact on social interactions and for businesses, specifically highlighting that it will be an advantageous tool in customer services for businesses using Meta products.
Meta shares rallied 12% after the company released the Q1 report. The report showed an unexpected increase described as a better-than-expected in sales for the first quarter against three consecutive quarters of decline.
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