Meta is putting a lot of virtual eggs - and billions of dollars - into the metaverse basket, and Wall Street is pretty anxious about it.
Shares of the company formerly known as Facebook saw a historic plunge Thursday after the social media giant reported a rare profit decline due to a sharp rise in expenses, shaky ad revenue growth, competition from TikTok and fewer daily U.S. users on its flagship platform.
At the same time, it invested more than US$10 billion in CEO Mark Zuckerberg's ambitious plan to transform Meta Platforms Inc. into a virtual reality - actually, make that 鈥渕etaverse-based鈥 - company.
Meta's shares fell more than 26 per cent to $237.76 in afternoon trading Thursday, lopping more than $230 billion off the company's overall value, or market capitalization. That's the largest single-day decline for a company on record.
鈥淢eta is sacrificing its core business model for its fascination with the metaverse,鈥 said Rachel Jones, an analyst with the research firm GlobalData. 鈥淏etting big on the metaverse isn't a bad thing - the technology is set to be huge and provide a multitude of opportunities - but it will take at least another decade to really get going.鈥
While tech companies are accustomed to making big bets on futuristic-sounding ideas that sometimes become reality - and come with a huge payoff - Wall Street doesn't like uncertainty. There's also the inconvenient fact of Facebook's continued difficulty in dealing with toxic real-world effects on its existing platform.
There's 鈥渃ontinued concern that Facebook's past challenges will follow Meta into the metaverse,鈥 said Mike Proulx, research director at Forrester Research. 鈥淭he company has work to do to convince consumers that Meta's expression of the metaverse is a good thing,鈥
Since Meta took on its new name last fall, the company has been shifting resources and hiring engineers - including from competitors like Apple and Google - who can help Zuckerberg realize his vision.
Think of the metaverse as the internet brought to life, or at least rendered in 3D. Zuckerberg has described it as a 鈥渧irtual environment鈥 in which you can immerse yourself instead of just staring at a screen. Theoretically, the metaverse would be a place where people can meet, work and play using virtual reality headsets, augmented reality glasses, smartphone apps or other devices.
It might sound like science fiction, but then again, not long ago so were computers that fit in your pocket, driverless cars and microwaves that talk to you. Technology barrels ahead whether we like it or not and, to quote a vintage Facebook motivational poster in the company's headquarters, 鈥渇ortune favors the bold.鈥 Despite an enormous backlash to Facebook's problems ranging from misinformation and privacy mishaps to teen mental health and hate speech, Zuckerberg continues to believe that bold bets to steer the company in new directions have generally paid off.
In a Wednesday conference call, Zuckerberg said the company's investments this year will focus on Reels - a TikTok-esque short form video service on Instagram - as well as messaging, ads, commerce, privacy, artificial intelligence 鈥渁nd, of course, the metaverse.鈥
鈥淢aking meaningful progress across all seven of these areas is going to improve the services we offer today and will help power a social, intuitive, and entertaining metaverse,鈥 he said. But he acknowledged that 鈥渢his fully realized vision is still a ways off, and although the direction is clear, our path ahead is not perfectly defined.鈥
But while Wall Street's metaverse optimism appears to fall well short off Zuckerberg's, Meta's rivals are ramping up their own metaverse projects. This includes Apple, Google and Microsoft, which recently bought the video game company Activision Blizzard with the hopes of accelerating its ambitions for the metaverse.
But it's not just the big companies. According to app analytics company SensorTower, 86 apps added 鈥渕etaverse鈥 to their title or description from November 2021 through January of this year. To date, 552 mobile apps include the term 鈥渕etaverse鈥 in their title or description.
Stifel analyst Mark Kelley sought to calm investors, noting that Zuckerberg outlined not one but seven investment priorities for the company this year. He said he doesn't think Meta's initial goal of reaching 1 billion metaverse users is a stretch - and importantly, he believes only 40% would be gamers, signaling its broader appeal.
Meta's stock plunge doesn't discourage metaverse enthusiast and venture capitalist Matthew Ball, who months before Facebook's renaming started an index fund of metaverse-related companies. Meta the company is one of the 45 stocks in Ball's index.
鈥淢ark's focus on the next-generation internet is actually justified by the fact they can see in their core business that growth is slowing, that users are shifting elsewhere, and in particular, young users are shifting to these virtual and immersive worlds where they're a small participant and where their investments are focused,鈥 he said.
AP Technology Writer Matt O'Brien contributed to this story.
Procurement Minister and newly appointed Quebec lieutenant Jean-Yves Duclos is warning the NDP that the dental care program it helped put into place will be in jeopardy if it pulls its support from the governing Liberals.
A morning cup of coffee may do more than just perk you up, according to new research.
In less than two months, Americans will go to the polls to choose their next president. But the process that translates those millions of votes into one seat in the Oval Office is much more complicated than a straight tally.
If your child sometimes has trouble sleeping, it may be easy to chalk it up to a phase they will grow out of one day. But a new study suggests possible serious consequences for this line of thought 鈥 such as a higher risk for suicidal ideation or attempts when they are older.
Body mass index, a long-time tool used to measure a person's health, may soon be out the door as some health professionals push for a system they say is more accurate.
Marxist lawmaker Anura Kumara Dissanayake on Sunday claimed he had won Sri Lanka鈥檚 presidential election.
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
Hezbollah launched more than 100 rockets early Sunday across a wider and deeper area of northern Israel, with some landing near the city of Haifa, as Israel launched hundreds of strikes on Lebanon. The sides appeared to be spiraling toward all-out war following months of escalating tensions.
Infectious disease physician Dr. Isaac Bogoch says whooping cough is most risky for unvaccinated infants, children and older people.
The British Columbia election campaign is set to officially start today, with Lt.-Gov. Janet Austin issuing the writ for the Oct. 19 vote.
A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.
Pasquale Monaco says he鈥檚 debating whether to keep renting out the two-bedroom basement apartment of the Montreal building he owns after it was flooded 鈥 again 鈥 in August, when the remnants of tropical storm Debby sent four feet of water rushing into the space.
Infectious disease physician Dr. Isaac Bogoch says whooping cough is most risky for unvaccinated infants, children and older people.
The London Police Service (LPS) is currently investigating a suspicious death in the east end.
One person has died following a shooting in Scarborough late last night.
Donald Trump has long pledged to deport millions of people, but he's bringing more specifics to his current bid for the White House: invoking wartime powers, relying on like-minded governors and using the military.
An explosion in a coal mine in eastern Iran killed at least 33 workers and injured 17 others, officials said Sunday, marking one of the worst mining disasters in the country's history as others remained missing hours after the blast.
In less than two months, Americans will go to the polls to choose their next president. But the process that translates those millions of votes into one seat in the Oval Office is much more complicated than a straight tally.
A two-story building collapsed in the southern Italian province of Naples early Sunday, killing two young siblings and leaving their mother and an older woman trapped, firefighters said.
Marxist lawmaker Anura Kumara Dissanayake on Sunday claimed he had won Sri Lanka鈥檚 presidential election.
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
Prime Minister Justin Trudeau is set to be in New York this week for the 78th meeting of the United Nations General Assembly and the Summit of the Future amid increasing geopolitical instability around the world.
A $2.14-billion federal loan for an Ottawa-based satellite operator has Canadian politicians arguing about whether American billionaire Elon Musk poses a national security risk.
Procurement Minister and newly appointed Quebec lieutenant Jean-Yves Duclos is warning the NDP that the dental care program it helped put into place will be in jeopardy if it pulls its support from the governing Liberals.
Body mass index, a long-time tool used to measure a person's health, may soon be out the door as some health professionals push for a system they say is more accurate.
Infectious disease physician Dr. Isaac Bogoch says whooping cough is most risky for unvaccinated infants, children and older people.
A morning cup of coffee may do more than just perk you up, according to new research.
If something looks too good to be true, it might be. That's the message from Saskatchewan horticulturists after customers have come into their stores hoping to buy purple apple trees this month.
The owner of the shuttered Three Mile Island nuclear power plant said Friday that it plans to restart the reactor under a 20-year agreement that calls for tech giant Microsoft to buy the power to supply its data centers with carbon-free energy.
Lebanese authorities on Thursday banned walkie-talkies and pagers from being taken on flights from Beirut airport, the National News Agency reported, after thousands of such devices exploded during a deadly attack on Hezbollah this week.
A Nova Scotian YouTuber has launched a mini-truck bookmobile.
Kathryn Crosby, who appeared in such movies as 'The 7th Voyage of Sinbad', 'Anatomy of a Murder,' and 'Operation Mad Ball' before marrying famed singer and Oscar-winning actor Bing Crosby, has died. She was 90.fff
'Saturday Night Live' will have a slew of famous faces to help kick off its historic 50th season when the show returns later this month.
It鈥檚 not easy going up against Canada鈥檚 banking oligopoly, but some are trying.
It is not a great time to be a coffee drinker. In general, coffee bean prices are the highest they've been in more than a decade.
The maker of the popular party game Cards Against Humanity is accusing Elon Musk's SpaceX of trespassing on and damaging a plot of vacant land the company owns in Texas.
More than 2,200 zoo professionals from 23 different countries have gathered in Calgary for the annual Association of Zoos and Aquariums conference.
Tattoos are becoming more common in today's society and, as a result, appear to be more acceptable in the workplace than they used to be.
The end of the day 鈥 when school, extracurricular activities and homework are (hopefully) finally done 鈥 is the window that many kids have for downtime. It can be a struggle to convince them not to go on their phones.
The Winnipeg Blue Bombers have a nickname for the opposition鈥檚 end zone. They refer to it as the 鈥渃hicken box.鈥
Jonathan Aranda homered for the second consecutive game, helping Taj Bradley and the Tampa Bay Rays beat the Toronto Blue Jays 3-2 on Saturday.
Kiefer Sherwood spent several nights last spring chasing Quinn Hughes around the ice and generally pestering the Vancouver Canucks.
General Motors (GM) has issued a recall for 38,000 vehicles for safety risks related to a software glitch, Transport Canada reported in a notice on Wednesday.
Chechen leader Ramzan Kadyrov has accused Tesla CEO Elon Musk of 'remotely disabling' his Cybertruck, which had been sent to the frontline of Russia's war in Ukraine.
An Ontario man says it is 'unfair' to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man鈥檚 best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.
A six-year-old girl who was reported missing in northern B.C. earlier this week remains unaccounted for, and "significant resources from across the province" have joined in the search, police said Saturday.
Volunteers and staff members gathered along Vancouver鈥檚 Stanley Park Seawall Saturday to pick up litter as part of International Coastal Cleanup Day.
A heritage home in Vancouver suffered "extensive damage" in a fire that broke out late Saturday morning, according to firefighters.
One person has died following a shooting in Scarborough late last night.
Toronto police have arrested three people and they are looking for two others in connection with an alleged fraud that saw a man and his daughter bilked out of more than $18,000.
A man who was critically injured in an eight-vehicle pileup in Milton Friday has died of his injuries in hospital.
Milla White from Cochrane literally drew her way into a meeting with former boxer and actor Mickey Rourke.
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
The water coming from your taps might be a bit murky Saturday, but Calgary remains on schedule to end all water restrictions on Sunday.
A potential move to LeBreton Flats for the Ottawa Senators is still years away, but questions and concerns are already being raised about what to do with the Canadian Tire Centre.
The Taste of Wellington 2024 wraps up Saturday in Ottawa.
A body has been found in the vicinity where a woman went missing on the Ottawa River near Pembroke, Ont. while kayaking Tuesday night, according to the Ontario Provincial Police (OPP).
Pasquale Monaco says he鈥檚 debating whether to keep renting out the two-bedroom basement apartment of the Montreal building he owns after it was flooded 鈥 again 鈥 in August, when the remnants of tropical storm Debby sent four feet of water rushing into the space.
A 19-year-old man is in critical condition after being stabbed in Montreal on Saturday.
Provincial police (SQ) is investigating the discovery of an unresponsive body in Saint-Gabriel-de-Brandon, in the Lanaudi猫re region.
The Winnipeg Blue Bombers have a nickname for the opposition鈥檚 end zone. They refer to it as the 鈥渃hicken box.鈥
The Edmonton Police Service is looking for a person of interest in connection with a suspicious fire that destroyed a multi-unit building and damaged several townhomes earlier this week.
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
A proposal for additional parking to accommodate upgrades at the Irving Pulp & Paper Mill in Saint John, N.B., would add an estimated 500 parking spots at Wolastoq Park.
A Nova Scotian YouTuber has launched a mini-truck bookmobile.
If your child sometimes has trouble sleeping, it may be easy to chalk it up to a phase they will grow out of one day. But a new study suggests possible serious consequences for this line of thought 鈥 such as a higher risk for suicidal ideation or attempts when they are older.
The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.
A herd of dogs paid visit to patients and residents at Riverview Health Centre during an annual event that lifts spirits and wags tails.
While slang may come and go, experts say the phenomenon behind them, which constantly churns out brand-new bon mots, is as old as language itself.
Fire officials are investigating after a fire completely destroyed the community fridge in the Cathedral neighborhood.
The last two months after losing her daughter Bella have been extremely difficult for Kyla Thomson.
Regina police arrested three youths in connection to a bear mace incident at a Regina high school on Friday.
The Cambridge Professional Fire Fighters鈥 Association held their annual Muscular Dystrophy Boot Drive on Saturday.
Protests were held in front of Kitchener City Hall on Friday, both for and against LGBTQ2S+ inclusive education and queer rights in schools.
Police said the pedestrian, a 52-year-old man, was taken to an out-of-region hospital with life-threatening injuries and the driver of the vehicle failed to remain at the scene.
The 75-year-old building, formerly the Waskesiu Chamber of Commerce building, was relocated to the Parks Canada compound on the edge of the townsite.
Saskatchewan RCMP major crimes unit is investigating after a man鈥檚 body was found on Sweetgrass First Nation.
Motors were roaring, and tires were spinning as Saskatoon's biggest names in motocross gathered together for the 50-year anniversary of the club's founding on Saturday.
Ontario鈥檚 police watchdog is investigating after an Ontario Provincial Police officer discharged his firearm at a 36-year-old man in near Moonbeam, Ont., on Friday night.
Procurement Minister and newly appointed Quebec lieutenant Jean-Yves Duclos is warning the NDP that the dental care program it helped put into place will be in jeopardy if it pulls its support from the governing Liberals.
For some young people, a popular method for getting a quick high is by misusing laughing gas 鈥 and lately, that鈥檚 in the form of nitrous oxide from products sold by the company Galaxy Gas.
The identity of a motorcyclist has been revealed by loved ones on social media following Friday鈥檚 fatal south end collision in London. The London Police Service has not released anything regarding the driver鈥檚 identity.
Huron County OPP are investigating a serious single vehicle collision that took place west of Seaforth.
The Chatham-Kent Police Service (CKPS) has arrested a man following an incident on Saturday.
The Barrie Skateboard Association (BSA) hosted a unique competition at the City's Skate Park on Saturday to celebrate its 25th anniversary, which showcased the park's importance and the growth of skateboarding in the region.
Police located and arrested a male suspect Saturday evening in relation to an alleged assault incident that occurred earlier this week in Gooderham.
A man is facing numerous drug trafficking charges after Dufferin OPP seized a large assortment of drugs and weapons in Orangeville earlier this week.
The Amherstburg Uncommon Festival is living up to its name with the addition of a drone light show 鈥 a first for Essex County.
The Chatham-Kent Police Service (CKPS) has arrested a man following an incident on Saturday.
A disturbance in Ridgetown has led to charges, according to the Chatham-Kent Police Service (CKPS).
A man who was found dead behind a curling rink in Nanaimo, B.C., earlier this month was the victim of a homicide, police confirmed.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A six-year-old girl who was reported missing in northern B.C. earlier this week remains unaccounted for, and "significant resources from across the province" have joined in the search, police said Saturday.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
Animal protection officers in British Columbia have rescued three pit bulls 鈥 including one that gave birth to 10 puppies 鈥 from a rat-infested home in Kelowna.
Despite the heavy rain, plenty of muscle turned up for United Way鈥檚 annual Pull the Bus fundraiser in Lethbridge Friday.
Lethbridge County has rescinded its fire restriction as a result of the recent cool, wet weathr.
The Lethbridge Hurricanes kicked off the 2024-25 season on a winning note Friday night, defeating the Edmonton Oil Kings 3-1 in a game played at VisitLethbridge.com Arena.
A northern Ontario man is facing a $12,000 fine after illegally shooting a moose near the Batchawan River.
Following an outbreak of COVID-19 on its continuing care floor and just ahead of the flu season, St. Joseph鈥檚 General Hospital in Elliot Lake has opted to re-introduce a universal masking policy until further notice.
A 26-year-old driver from Surrey, B.C., has been charged with three counts of criminal negligence causing death and bodily harm in a crash that killed two youths in northern Ontario last year.
Newfoundland and Labrador sponsored a minor football team in England, now they鈥檙e about to play one of the biggest clubs in European soccer.
Newfoundland and Labrador's chief medical officer is monitoring the rise of whooping cough infections across the province as cases of the highly contagious disease continue to grow across Canada.
A 16-year-old biennial event aimed at fostering business in the country's eastern Arctic and northern regions has been cancelled indefinitely as a dispute unfolds between Inuit in Canada and a Labrador group claiming to share their heritage.
The Shopping Trends team is independent of the journalists at 麻豆影视. We may earn a commission when you use our links to shop.聽Read about us.
