“I think there is a real place in the metaverse in the world,” McDermott said. Said on Yahoo Finance Live (video above). “It’s real. But even if you spend time in the Metaverse, you need to come back to Earth, where real people live, and actually execute your business plans.”
McDermottPreviously, he was the CEO of SAP for many years.
“You’ll always see this kind of interdependence between the metaverse world and the real world where business takes place,” added McDermott. “And that’s where we come in. We play both places.”
Investors don’t currently share McDermott’s passion for the Metaverse.
meta (meta) Shares plunged 22% on Thursday as Facebook and Instagram owners continued to spend aggressively to build out the metaverse. Management has suggested that the blistering pace of spending will continue through 2023.
The social media platform has outlined a year-over-year increase in expenses of about 13% for fiscal 2023, well above Street’s forecast of 7%.
“With a new chief financial officer, some might argue the bank is overly conservative,” Deutsche Bank analyst Benjamin Black wrote in a note to clients. And while the meta usually drops, [operating expenditure] Given the guidance throughout the year (as has been the case since the beginning of the year so far), the rising spending outlook is the wrong number for investors at the wrong time.”
Meta’s earnings prospects were also not very good. The fourth-quarter earnings outlook was his $30 billion to $32.5 billion, but Wall Street expected him to be $32.2 billion.
Meta has announced an accelerated investment in Reality Lab from 2023 onwards, but recognizes that spending will increase significantly next year.
In a note to clients, Wedbush analyst Dan Ives said, “The Meta results show a widespread digital advertising slump as Zuckerberg & Co. makes risky and mind-boggling bets on the Metaverse. It was an absolute catastrophe that speaks for itself.”