Metaplatforms‘ (GOAL -5.59%) the metaverse goes in reverse. Facebook’s parent company issued a stinky earnings report on Wednesday, missing expectations on almost all key metrics and offering disappointing guidance.

Meta shares slumped in third-quarter results, falling 20% ​​in after-hours trading, and it’s clear why. Overall, the results show a company whose once-dominant ad business is fading, as it pursues what looks increasingly like boondoggle in the metaverse. Revenue from Reality Labs, its metaverse-focused division, slumped in the quarter and the company said losses in the segment would widen significantly next year.

A reality check for Meta

Reality Labs revenue fell 51% to $285 million, which was the company’s lowest revenue in the metaverse business…