Reality Labs Will Spend Billions Even though Meta Has Made the Largest Cuts in Meta’s History

Firestone stated that tech companies are often committed to spending, but then suddenly get religious on the cost side. “Nobody enjoys the feeling that your stock options are worth less and less,” Firestone said.

Jhaveri challenged the market narrative that Meta is a declining business. He cited the fact that there are more users on Facebook than ever and strong profits are still being generated from the core business. Wall Street didn’t like the most recent set of quarterly numbers despite having more active users. While revenue fell, Meta’s expenses and costs rose. The income declined by approximately half compared to the previous year and Meta’s operating profit sank. Recent gains in the tech sector have helped the stock rebound from its October earnings lows.

Jhaveri stated that market scrutiny is a necessity for us to focus.

Meta will be facing more competition from well-off rivals in a market that Meta holds the early lead, with Apple set to release its mixed reality headset soon.

Jhaveri stated that the Meta Quest Pro VR headset price tag of $1,500 would be reduced, but it may not happen soon. Jhaveri stated that the current Pro model, which a CNBC reviewer called a “huge upgrade” and a technology still searching for an audience fit — is expensive.

He said, “If you compare this pound to pound, and atom to atom, it has most tech packed into a headset… it’s almost as if it were its own computer.”

He also made a comparison with flat-screen plasma TVs, which were once too expensive for most consumers. Jhaveri stated that flat-screen plasma TVs were first introduced in 1999 or 2000. It cost $10,000 to buy a 40-inch television that was not 720 [resolution].] We were eager for this plasma TV and now you can get a 70 inch for $1,800.

He stated that the Pro line’s advanced technology is available for developers to use and enterprises to adopt. A lot of this will eventually flow down to consumer models. The next one is Quest 3, which is expected to launch next year.

Jhaveri stated that “we believe in these cost curves going down, and what is state-of-the art today becomes mainstream tomorrow,”