Published on 26 Apr 2024 on Motley Fool via Yahoo Finance
Meta Plans to Outsource VR Hardware Development to Boost Profits -- Is It Time to Buy the Stock?
Last year is often billed as Meta Platforms (NASDAQ: META) co-founder and CEO Mark Zuckerberg's "year of efficiency." Indeed, it should be billed as such. Meta earnings soared as the company cut expenses and started putting its AI to use to boost productivity (especially for social media ads), and thus earnings.
Despite this boost to Meta's earnings power, there's still work to be done. The virtual reality (VR) segment Reality Labs remains a sizable drain on efficiency. Reality Labs gobbled up a massive $16.1 billion in operating expenses in 2023 alone, on revenue of just $1.9 billion. In Q1 2024, Reality Labs reported another $3.85 billion operating loss.