Facebook looks to make its metaverse future a reality as ad growth winds down
![Speeding into the metaverse [THEPALMER/E+ via Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/3mTPwUFQnl7rtXu70spC19_1_GettyImages-585617626.jpg)
Ask app not to track? Facebook missed quarterly sales expectations as ad-revenue growth slowed big-time from the previous quarter (33% growth vs. 56%). FB blamed Apple’s iOS update, which lets users opt out of ad tracking — and warned it could continue hurting sales. BTW: Snap blamed its earnings miss on the iOS change too. (Twitter didn’t feel a hit.) But the real highlight of FB’s results was the metaverse.
BRB, I’m inside the internet… FB is doubling down on its vision of an immersive digital future. FB wants to be a metaverse company — not a social company (it’s even planning a meta-focused name change). Instead of engaging with just a screen, the metaverse is an internet you can be inside of. Think: going to a VR concert with friends' avatars, shopping at VR stores, working in a virtual office, and even owning VR real estate. Facebook’s meta moves:
- In 2014, FB bought VR headset company Oculus, which will be a key entry point into its metaverse. Think: Facebook Horizon, a recently launched VR gaming world.
- In August, Facebook launched a Sims-like VR office, which can be accessed free... with a $300 pair of Oculus Quest 2 headsets.
- In September, Facebook unveiled its first AR smart glasses, designed by Ray-Ban.
- Now, FB will start reporting financial results from Facebook Reality Labs, which houses its VR and AR products.
FB’s rebrand is about self-reliance… FB expects its investment in the metaverse to reduce its total operating profit by a whopping $10B this year. But that could be worth it if it means Facebook won’t have to be as dependent on other companies to make $$$. Ad sales currently make up 97% of FB’s total — and rely on your scrolling on Apple and Google phones. But the metaverse could be a hub for virtual interaction and commerce, from games and ticket sales to hangouts, all powered by Facebook.