Facebook's Metaverse Plans As Advertising Business Dwindles: Everything You Need To Know

Facebook Inc FB plans to start publishing the financial results as two operating segments, Family of Apps and Facebook Reality Labs, beginning in the fourth quarter of 2021. The company also disclosed in the filing that market acceptance of digital payments network is subject to significant uncertainty.
Facebook noted that there could be no assurance that Diem or its associated products and services will be made available on time or at all.
Facebook expects its investment in its hardware division, Facebook Reality Labs, to reduce overall operating profit in 2021 by $10 billion.
"This is not an investment that is going to be profitable for us any time in the near future," CEO Mark Zuckerberg said. "But we basically believe that the metaverse is going to be the successor to the mobile internet."
Facebook reported a Q3 profit of $9.2 billion, up 17%, warned that Apple Inc's AAPL new privacy changes would weigh on its digital business in the current quarter.
Facebook's Q3 revenue of $29.01 billion, up 35% Y/Y, missed the consensus of $29.58 billion, which COO Sheryl Sandberg ascribed to the iOS privacy changes, global supply-chain disruptions, and labor shortages.
Facebook emphasized attracting young adults, including through its short video feature "Reels," acknowledging growing competition from ByteDance's TikTok.
Zuckerberg issued a defense against criticisms originating from the documents leaked by the former Facebook employee and whistleblower Frances Haugen.
Facebook reported monthly active users of 2.91 billion, up 6% year-on-year.
Facebook sees Q4 revenue of $31.5 billion - $34 billion, below the consensus of $34.8 billion, reflecting "continued headwinds from Apple's iOS 14 changes" and other factors.
Facebook announced an additional $50 billion in share buybacks.
Facebook sees 2022 expenses of $91 billion - $97 billion, including on staff and infrastructure.
Facebook, whose shares have gained about 20% this year, is inching closer towards the $1 trillion club.
Price Action: FB shares traded higher by 2.14% at $335.74 in the premarket session on the last check Tuesday.

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Facebook's Metaverse Plans As Advertising Business Dwindles: Everything You Need To Know