The stench of doom emanating from Meta is starting to become over-powering. An out of touch CEO surrounded by yes men, who won't let him know the emperor has no clothes.
Meanwhile, stock is up 20% today..
Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
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Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#12Meanwhile "Meta shares jump after profit triples and company announces first-ever dividend", also from CNBC
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#13Earlier quoted context omitted.
Actually, is Meta strategically using this for loss write-offs/tax evasion/tricky balance sheet mechanics/financial engineering? -- EDIT -- Thank you tomxor for entertaining a possible answer.
Oh yes, just burn all the money so they can use it as a tax write-off? Does anyone really know how these tax write-offs work? People just use the term without any clear understanding. Meta like any sane company out there will probably use every rule to avoid (not evade) paying tax. Thats good for the shareholders. But this isn't one such measure, it's mostly R&D expenditure.
It works as a tax free investment. So long as it actually pays off in the future, they get to skip tax by putting it straight into R&D now instead of tomorrow. Another thing they did was sell hardware below cost, so the public kind of benefit - but at the same time FB potentially benefit by undercutting competition and gaining market share... One way of framing that last one might be "Deciding how their tax is spent so that it might benefit Facebook" - from that perspective it doesn't seem like a bad idea (purely from the business side, not public interest) to burn the tax yourself for a little more control.
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#14How does the Apple launch tie into Meta's loss? Is the implication that the losses are going to deepen now that Apple's device is out?
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#15> The metaverse division has now lost more than $42 billion since the end of 2020 I can't help but think of how this cash could have been spent on something that benefited everyone (in the dire covid/postcovid years no less) rather than the world's most expensive trial on whether people would rather meet in a MMO world than with their web cameras in a meeting app. Makes Star Citizen's $0.7B crowdfunding look cheap.
I share your sentiments, but realistically how would one implement that? The US (where meta is based) government (ie, the people) can't agree what benefits everyone. The positive side is all of the jobs it paid for.
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#16It's actually very interesting. A lot of the things that people have been impressed by about Apple Vision pro was already possible with the Quest 3 (much of it with the Quest 2 as well). There are a lot of things wrong with Reality Labs as an organization (I used to work there) but I do think they're chasing something real.
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#17The stench of doom emanating from Meta is starting to become over-powering. An out of touch CEO surrounded by yes men, who won't let him know the emperor has no clothes.
Meanwhile, stock is up 20% today..
Stock buybacks and announcing a new dividend will definitely do that on its own.
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#18Probably the first trillion dollar company with just 66K employees.
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#19Probably the first trillion dollar company with just 66K employees.
Nvidia has a market cap of 1.5T and 26k employees.
Re: Meta's Reality Labs loses record $4.65B ahead of Apple's Vision Pro launch
#20What is the breakdown for how this money is being used/spent? Understandably AR/VR is costly (hardware, software, etc), but I am wondering what percentage of this money is going to the AI research that can certainly help AR/VR but also be used in other contexts (as in the research allocated to AR/VR can be multi-purpose and not really a pure loss).
Actually, is Meta strategically using this for loss write-offs/tax evasion/tricky balance sheet mechanics/financial engineering? -- EDIT -- Thank you tomxor for entertaining a possible answer.
You cant save money by losing money. Metas tax rate is 17%, write offs are still loses.