Meta Metaverse Investment Results are lackluster almost four years after Mark Zuckerberg changed Facebook’s name to Meta to pursue his metaverse ambition. Despite investing tens of billions in the initiative, Meta has seen little actual return, fueling increasing questions about its long-term viability.
Billions Spent, Little to Show
Meta’s investment in its Reality Labs division, the center for its AR/VR and metaverse aspirations, has surged to $45 billion by early 2025. That is approximately:
Equal to the combined market capitalization of Snap and Pinterest
The exact amount Elon Musk paid to acquire Twitter
Worse, Zuckerberg said in a 2024 earnings report that losses will “increase meaningfully,” a nebulous promise frightening more than comforting investors.
Inside Reality Labs: Dysfunction and Disarray
Meta Metaverse Investment Interviews with more than a dozen former top staff members indicate that Reality Labs is chaotic:
Constant leadership turnover and organizational reshuffling
Leaders from unrelated divisions (like Instagram) were promoted to AR/VR roles without relevant experience
A former researcher described it as “chaotic,” saying Meta plays “employee bingo” with critical roles
These issues have resulted in a lack of product focus and ballooning losses.
A Financial Black Hole
Meta’s AR/VR losses by year:
2020: $6 billion
2021: $10 billion
2022: $13 billion
2023: $16 billion
Q1 2024: $3.8 billion
That Q1 loss by itself almost eliminated the combined revenue of the segment from 2022 and 2023.
Revenue Declining Despite Rising Spend
Meta’s significant investment has consistently reduced Reality Labs’ annual income since 2021. The division finds it difficult to remain relevant due to low public acceptance and poor hardware sales.
Wall Street analyst Gene Munster of Deepwater Asset Management said, “This sums it up.”
“Reality Labs is a financial disaster dragging down Meta’s stock.”
Investor Patience Wearing Thin
Some investors have kept hoping since they saw AR and VR’s long-term possibilities. However, that hope is rapidly withering with yearly losses between $10–15 billion. Maintaining this burn rate is just unsustainable without fast mass adoption.
