Meta Platforms Inc. - Where is the metaverse?

Just a few quarters back, many were spelling the end of Meta with its lost crusade against other social media platforms like TikTok and its quest for the metaverse.

Though there are bright spots in the latest quarter results, there too are some points to take note of.

Although revenue grew YoY from Q1'22 to Q1'23, QoQ wise it is still a drop.

I know, Meta's results can be lumpy and cyclical. But 3% growth is too stable for a tech company?

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Meta's gateway to the metaverse, its Reality Labs segment, is facing major headwinds in terms of growth. In Q1'23, it only raked in USD 339 million. That is a 51% drop YoY.

Its family of apps did well, but one might rethink and ponder whether the metaverse pipeline is intact or not.

Meta will continue to plow in huge capital for CAPEX.

As per the CFO's commentary, "Capital expenditures are to be in the range of $30-33 billion, unchanged from the prior estimate. This outlook reflects our ongoing build-out of AI capacity to support ads, Feed, and Reels, along with increased investment in capacity for our generative AI initiatives."

The word metaverse seems to be missing, but in the age where AI is rampant, I guess it's fair to switch the terminology accordingly.

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