Zuckerberg’s immersion in the metaverse is unsuccessful

Mark Zuckerberg is taking investors deep into the metaverse. Along with its quarterly results, Facebook on Monday unveiled its plans for a new reporting structure that will provide more information on augmented reality initiatives, among others. Any additional clarity is welcome, but the changes avoid breaking down information about more important businesses, such as Instagram.

The new unit, dubbed Facebook Reality Labs, will reveal the revenue and operating benefits of the place where the physical and virtual worlds collide. The flagship social network, Instagram, and WhatsApp are grouped separately into a division called Family of Apps, whose services account for the majority of revenue. In the quarter, the group’s revenue grew 35% over the previous year, to $ 29 billion.

These businesses are slowing down. In particular, the privacy changes implemented by Apple in its mobile operating system are hurting advertising on Facebook and causing “significant uncertainty.” Chief Operating Officer Sheryl Sandberg said it would take time to rebuild its measurement and segmentation capabilities. The number of people Zuckerberg’s company is attracting in the US and Canada – its most lucrative user base – is stagnating. The company also admitted that the competition for teen members is tough because so many are turning to TikTok and Snapchat. It’s a big reason why getting more out about Instagram – which appeals to a younger audience – could be valuable.

Facebook is under siege after a whistleblower exposed internal documents suggesting it puts profit over control of divisive and toxic content. The scandal contributes to increasing questions about the ability to sustain a scorching ad growth. All this makes it understandable that the founder is looking to the future, but it is also a bad time to hide behind the helmets.

The authors are columnists for Reuters Breakingviews. Opinions are yours. The translation, by Carlos Gómez Abajo, is the responsibility of Five days

We wish to give thanks to the author of this short article for this outstanding material

Zuckerberg’s immersion in the metaverse is unsuccessful