Meta Platforms’ latest earnings report shows that the company’s bet on the metaverse hasn’t paid off yet.

The fundamentals of Meta’s third quarter earnings report do not inspire confidence in the company’s recent operations. Despite earning $27.7 billion in revenue, this figure is 4% lower than the same period in 2021.

This decline is compounded when you factor in expenses, which were up almost 20% compared to the third quarter of 2021. In total, this resulted in a whopping 52% drop in net income, to $4.4 billion from $9.2 billion for the year. past.

Although shares of Meta had risen to approximately $140, these gains quickly evaporated by 25% in after-hours trading.

Reality check for reality labs

Meta’s disappointing third quarter results can be largely attributed to its investment in Reality Labs. The…