Meta beats expectations with strong Q2 results, plans to expand metaverse despite losses

Meta Platforms has released its financial results for the second quarter, exceeding Wall Street's expectations with a robust rise in advertising revenue. The company reported a 12 per cent growth in ad revenue, outpacing even Google's ad revenue growth of 3 per cent. Overall, second-quarter revenue reached $32 billion, surpassing the estimated average of $31.12 billion. These positive figures signal that consumers and advertisers are actively engaging on the platform despite broader economic concerns.

Meta's CEO, Mark Zuckerberg, expressed enthusiasm about the company's future prospects, citing strong user engagement across their apps. The roadmap includes the release of Llama 2, Threads, Reels, new AI products, and the highly anticipated launch of Quest 3 in the fall.

According to Meta, the company will invest heavily in data centers and AI technology to stay competitive in the evolving tech sector. The company has earmarked more than $10 billion annually for its longer-term bet on "metaverse" hardware and software. Zuckerberg emphasized that AI is central to Meta's growth strategy, envisioning revenue streams from AI-powered features for advertisers, AI agents on chat, and internal company productivity tools.

Also read: 'Slightly kinder alternative': Meta President of Global Affairs Nick Clegg weighs in on Twitter vs Threads

Fate of Threads

Discussing Threads, the recently launched microblogging app, Zuckerberg acknowledged that there is still much work to be done in terms of building and experimenting with user-friendly features. Despite initial excitement and a record-breaking launch with over 100 million users, Threads' user engagement has experienced a slight decline. However, in a call with analysts, Zuckerberg assured investors that Meta would continue to refine the app and add new functionalities in the coming months and years to sustain its growth.

The company's ambition to lead the metaverse revolution remains steadfast, even though Meta has incurred substantial losses of more than $40 billion on metaverse projects to date. Zuckerberg reaffirmed his belief that the metaverse is the direction the world is moving toward, and Meta is committed to shaping this future.

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Zuckerberg emphasized that Meta envisions Threads as part of the "fediverse," allowing users to share content interoperably across different platforms, promoting a more open and interconnected ecosystem. Meta's President of Global Affairs, Nick Clegg in an interview with India Today also confirmed this line of argument saying that Meta doesn't want to build "stone-walled garden".