Introduction

Mark Zuckerberg of Meta Platforms (NASDAQ: META) has been betting aggressively on the metaverse in hopes of creating a whole new AR/VR ecosystem for users to have fun in a virtual world.

Between 4Q20 and 2Q22, Meta has incurred a total operating loss of $18 billion for the Reality Labs segment on revenue of just over $4 billion. While the early losses are understandable, with Zuckerberg signaling that Reality Labs won’t be a real business story until the end of the decade, investors are beginning to question whether Facebook’s transition to the metaverse will actually be an engine of sustainable growth for the company. social networks.

In this article, I’ll discuss why the metaverse is likely to fail and explain why investors shouldn’t bet on Reality…