Meta reported losses of $2.8 billion for its metaverse-focused division, Reality Labs, as the firm missed on earnings and revenue for the second quarter.
The tech giant's shares dropped as much as 5% in after-hours trading on Wednesday immediately after earnings, before paring losses — down just over 1.5% at the time of writing, according to Nasdaq data.
Its metaverse division, Reality Labs, reported earnings of $452 million for the quarter, down from $695 million in the first quarter. The division previously posted a $2.9 billion loss in the first quarter of 2022.
Overall the company came in below expectations on Wednesday, with total revenue for the second quarter of 2022 coming in at $28.82 billion — below estimates of $28.9 billion for the quarter. Earnings per share came in at $2.46, below estimates of $2.54.
Zuckerberg recently told employees during a weekly Q&A that he believes the economy is headed for one of the “worst downturns that we’ve seen in recent history." The long-time CEO added that some people at the company shouldn't be there, before saying the firm was raising expectations to turn the heat up on its staff.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.