Latest news with #RealityLabs
CNBC
4 days ago
- Business
- CNBC
The metaverse as we knew it failed, but it's being resurrected for new worlds
While the metaverse is often seen as a joke in 2025 because of low user counts and poor financial performance (take Meta's Reality Labs division and its continued losses, estimated by Statista at $70 billion all-time), the industry may be thriving in ways the general public doesn't realize. "The hype around the entertainment part has subsided," said Andy Lee, partner at law firm Jones Walker who specializes in privacy, data strategy, artificial intelligence and the metaverse. Instead, Lee said there's a "pragmatic recalibration" happening, where enterprise companies and even entire industries are starting to use immersive 3D worlds for uses like upskilling and scenario planning. Venture funds like Intel Capital and Venture Reality Fund are taking a close look at the metaverse for all its purposes. For instance, the metaverse might serve to train police officers on how to handle someone in a mental health crisis or someone that's high on fentanyl, according to Neil Sahota, CEO of ACSILabs, which develops virtual worlds for enterprises. "While you might hear about it or read about it in the classroom setting, it's very different when it's happening in real life," said Sahota, who also serves as an artificial intelligence advisor for the United Nations. While the use cases vary, one thing remains consistent — where the metaverse seems to thrive today is not as a generic duplicate of our world as we know it, but rather a purposeful industry solution solving a need that already exists. Meta's VR headset business continues to evolve and find new uses cases outside the consumer market. Other challengers such as Apple Vision Pro face an uncertain outlook. But more targeted metaverse solutions are taking place inside large enterprises. ACSILabs has created custom virtual worlds to help lawyers prepare for big cases, helping them play out different types of arguments and case strategies. Based on what's known about the judge, opposing counsel and jury, they can combine cognitive science and AI to determine how different tactics will land. What's interesting is that when users try this technology, they feel emboldened. "They start realizing that I can try more risky things, and see what happens," Sahota said. But does it really work? While there are caveats, there are positive results. When working with a government client to provide training in an immersive world, Sahota said that ACSILabs was able to deliver the equivalent of three years of field experience for a specific topic over the course of 18 in-game hours. Osso VR is another company developing VR modules for health technology. Those who used its solution to learn surgical techniques performed up to three times better than those educated via standard practices, according to the company. Sahota added that jet engine manufacturers use the metaverse (or even simpler digital twins) to test safety and performance in ways that are impossible in the real world. He pointed out questions the metaverse could answer, including: "How would this perform on a Boeing 777 at 80,000 feet? What happens if the engine is in an electrical storm?" Regardless of how it's used, the metaverse is not without risks — and given the sheer depth of this technology, the number of considerations can add up. The primary consideration, for Lee, is data privacy and security. "The platforms are going to be handling sensitive data, anything from performance metrics to biometric data," he said. Additionally, scenarios being used for law enforcement or healthcare training could have sensitive information, particularly if they stem from real-world occurrences. For companies seeking safe vendors, privacy and security by design (where these elements are built in from the beginning rather than added on after the fact) are key. Staying plugged in to regulations like the EU's General Data Protection Regulation, California Consumer Privacy Act, or HIPAA in the U.S. is crucial. Even with a potential state-level moratorium on AI regulation coming into play in the U.S., paying attention to the evolution of global AI regulation (as it pertains to privacy, bias and more) is also relevant because metaverse platforms often use AI to streamline asset creation. Lee recommended choosing one or a few people in the organization to take on reading the full terms and conditions of an enterprise metaverse vendor to make sure you know exactly what you're getting into. Especially for high-stakes scenarios, liability plays a major role. "You're going to have potential for a real-world error if the training itself was inaccurate," Lee said. "Companies and users are going to have to be dialed in on the liability issues if the training were to be deemed insufficient or misleading," Lee added. Then there's content moderation, which Lee considers crucial even in professional settings. Outside of harassment concerns, highly realistic images can trigger trauma responses. While most research currently pertains to video games, it's clear that virtual worlds can indeed elicit negative psychological responses. At the core of it all, metaverse training and scenario planning is designed to be real-world-adjacent. But it's not the real world. "While these are simulations that are powerful for learning, direct transfer of the learned skills to real world situations requires critical reflection," Lee said. "Most folks employing it should know that they need real world practice before something actually occurs that they have to respond to and not to rely fully on the virtual training," he added.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Meta Platforms' Reality Labs Division Recently Hit a Milestone, and It's Not a Good One
Meta Platforms (NASDAQ: META) has diversified its business over the years. No longer is it just a social media company; it's expanded into artificial intelligence (AI) and of course, the metaverse, and it even changed its name to highlight its focus on that latter opportunity. While Meta Platforms has piled a lot of resources into the metaverse and its Reality Labs division, the payoff simply hasn't been there, and it's questionable whether it ever will be. Recently, the Reality Labs division hit a milestone, which is more indicative of what kind of money pit it has become rather than terrific growth opportunity. Reality Labs has incurred more than $60 billion in operating losses If you've been following Meta's performance in recent years, you've likely seen the continual losses from the Reality Labs business, normally totaling multiple billions of dollars per quarter. But with strong revenue growth from advertising and its social media platforms continuing, investors have largely ignored that unattractive part of its financials. In its most recent quarter, however, the operating losses from Reality Labs reached a cumulative total of more than $60 billion. It's a staggering amount that the company has incurred on the business since first reporting on the new segment back in 2021. Year Operating Loss for Reality Labs 2025 (Q1 only) $4.2 billion 2024 $17.7 billion 2023 $16.1 billion 2022 $13.7 billion 2021 $10.2 billion Source: Company filings. Table by author. That adds up to $62 billion. And what's noteworthy is that the losses have been increasing over the years. Meta's strong numbers have been masking the problem, for now Through the first three months of 2025, Meta grew its profits by 35% to $16.6 billion. Its Family of Apps segment, which includes its core social media assets such as WhatsApp and Facebook, generated an operating profit of nearly $21.8 billion, which easily covered the losses from Reality Labs. While that has masked the issue thus far, there are a couple of reasons why this is worrisome. The first and most obvious one is that eventually this advertising-fueled revenue growth will slow down. If economic conditions slow down, companies are likely to cut back on ad spend. As the growth rate slows and Meta's earnings don't look as impressive anymore, it'll only be a matter of time before more attention is paid to that troubling Reality Labs business. Investors may become more demanding of a payoff from that investment sooner rather than later, and that could lead to a sharp decline in the share price. The second reason is that it highlights a deeper issue: poor asset allocation. Meta has been chasing the latest trends for years. It used to talk up the metaverse back when it was in the spotlight; it launched Threads to compete with Twitter (now X); and now its focus is on AI, recently announcing that it would roll out a stand-alone Meta AI app to compete against ChatGPT. The company has also invested $14.3 billion into Scale AI and has been looking at other AI companies to invest in as well. At a time when there are concerns about overspending on AI and with so many competitors out there, Meta looks like it may yet again become too aggressive in pursuing a hot tech trend. Investors should tread carefully with Meta Shares of Meta Platforms are up 19% this year (returns as of June 23) as investors continue to be bullish on its business. And at 27 times its trailing earnings, the stock may still appear to be modestly priced. But with the company investing heavily into the metaverse and now AI as well, tougher times may be ahead for the business, especially if the economy slows down. If its earnings start to fall, this could quickly become a much more expensive stock. My biggest concern is with its aggressive spending, as that could backfire in the future. Right now, the market is at around all-time highs, and investor sentiment remains positive. But it may only be a matter of time before that changes due to tariffs and global trade issues. Meta's business is highly dependent on a strong ad market, and if that buckles, the social media stock could be due for a steep correction. Plus, there's still the antitrust case involving Instagram and WhatsApp looming over Meta, which could drastically change its business and its growth potential if a breakup ends up happening. As well as the business has been doing in recent quarters, I'd stay on the sidelines and hold off on buying Meta's stock right now. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor 's total average return is809% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
Yahoo
5 days ago
- Business
- Yahoo
Meta Platforms' Reality Labs Division Recently Hit a Milestone, and It's Not a Good One
Meta Platforms' losses on its Reality Labs division have continually risen over the years. The company has invested aggressively into the metaverse without any clear payoff. Now, the company is also spending heavily on artificial intelligence. 10 stocks we like better than Meta Platforms › Meta Platforms (NASDAQ: META) has diversified its business over the years. No longer is it just a social media company; it's expanded into artificial intelligence (AI) and of course, the metaverse, and it even changed its name to highlight its focus on that latter opportunity. While Meta Platforms has piled a lot of resources into the metaverse and its Reality Labs division, the payoff simply hasn't been there, and it's questionable whether it ever will be. Recently, the Reality Labs division hit a milestone, which is more indicative of what kind of money pit it has become rather than terrific growth opportunity. If you've been following Meta's performance in recent years, you've likely seen the continual losses from the Reality Labs business, normally totaling multiple billions of dollars per quarter. But with strong revenue growth from advertising and its social media platforms continuing, investors have largely ignored that unattractive part of its financials. In its most recent quarter, however, the operating losses from Reality Labs reached a cumulative total of more than $60 billion. It's a staggering amount that the company has incurred on the business since first reporting on the new segment back in 2021. Year Operating Loss for Reality Labs 2025 (Q1 only) $4.2 billion 2024 $17.7 billion 2023 $16.1 billion 2022 $13.7 billion 2021 $10.2 billion Source: Company filings. Table by author. That adds up to $62 billion. And what's noteworthy is that the losses have been increasing over the years. Through the first three months of 2025, Meta grew its profits by 35% to $16.6 billion. Its Family of Apps segment, which includes its core social media assets such as WhatsApp and Facebook, generated an operating profit of nearly $21.8 billion, which easily covered the losses from Reality Labs. While that has masked the issue thus far, there are a couple of reasons why this is worrisome. The first and most obvious one is that eventually this advertising-fueled revenue growth will slow down. If economic conditions slow down, companies are likely to cut back on ad spend. As the growth rate slows and Meta's earnings don't look as impressive anymore, it'll only be a matter of time before more attention is paid to that troubling Reality Labs business. Investors may become more demanding of a payoff from that investment sooner rather than later, and that could lead to a sharp decline in the share price. The second reason is that it highlights a deeper issue: poor asset allocation. Meta has been chasing the latest trends for years. It used to talk up the metaverse back when it was in the spotlight; it launched Threads to compete with Twitter (now X); and now its focus is on AI, recently announcing that it would roll out a stand-alone Meta AI app to compete against ChatGPT. The company has also invested $14.3 billion into Scale AI and has been looking at other AI companies to invest in as well. At a time when there are concerns about overspending on AI and with so many competitors out there, Meta looks like it may yet again become too aggressive in pursuing a hot tech trend. Shares of Meta Platforms are up 19% this year (returns as of June 23) as investors continue to be bullish on its business. And at 27 times its trailing earnings, the stock may still appear to be modestly priced. But with the company investing heavily into the metaverse and now AI as well, tougher times may be ahead for the business, especially if the economy slows down. If its earnings start to fall, this could quickly become a much more expensive stock. My biggest concern is with its aggressive spending, as that could backfire in the future. Right now, the market is at around all-time highs, and investor sentiment remains positive. But it may only be a matter of time before that changes due to tariffs and global trade issues. Meta's business is highly dependent on a strong ad market, and if that buckles, the social media stock could be due for a steep correction. Plus, there's still the antitrust case involving Instagram and WhatsApp looming over Meta, which could drastically change its business and its growth potential if a breakup ends up happening. As well as the business has been doing in recent quarters, I'd stay on the sidelines and hold off on buying Meta's stock right now. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. Meta Platforms' Reality Labs Division Recently Hit a Milestone, and It's Not a Good One was originally published by The Motley Fool
Yahoo
23-06-2025
- Business
- Yahoo
Cantor Fitzgerald Boosts Meta (META) PT to $807 on Confidence in WhatsApp Ad Monetization
Meta Platforms Inc. (NASDAQ:META) is one of the best QQQ stocks to buy according to hedge funds. On June 19, Cantor Fitzgerald reaffirmed its Overweight rating for Meta while increasing the price target from $676 to $807. The adjustment was made by analyst Deepak Mathivanan, who signals strong confidence in Meta's future growth potential. Meta is now focused on integrating advertisements into WhatsApp's Updates tab, which improved Mathivanan's outlook on the company as he believes that the move will unlock new revenue streams for Meta without compromising user experience. He also highlighted new ad formats, such as 'Promoted Channels' and 'Status Ads.' Mathivanan estimates that if ad adoption reaches even 5% of the current levels seen on Instagram and Facebook, it could substantially impact Meta's earnings by FY2027. WhatsApp has a user base of over 3 billion monthly users globally, with 82% of monthly users active daily, viewing an average of 50 stories. Given this engagement, even a small increase in ad presence is expected to boost Meta's earnings shortly. Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends & family through two segments: Family of Apps (FoA) and Reality Labs (RL). While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Phone Arena
20-06-2025
- Business
- Phone Arena
Meet the Oakley AI glasses, a more robust successor to the Meta Ray-Ban smart glasses
Meta Oakley smart glasses Oakley and Meta partnered up for these AI-powered smart glasses. | Video credit — Oakley Would you ever buy smart glasses that don't have a display? Yes No Undecided Not interested in smart glasses Yes 0% No 0% Undecided 0% Not interested in smart glasses 0% Ray-Ban glasses were an unprecedented success The Ray-Ban smart glasses were very popular. | Video credit — Meta When the Ray-Ban smart glasses took off, Meta immediately restructured Reality Labs: its XR ( Extended Reality ) division. The idea was to focus much more heavily on similar wearables that are affordable and don't have a display, yet are extremely practical due to AI. This strategy has caught the attention of competitors like Apple, which is also experimenting with releasing a similar product. Apple is working on proper AR glasses too, of course, but something like the Oakley and Ray-Ban smart glasses is a currently achievable product that is proven to be in demand. A stepping stone towards AR smart glasses The Meta Ray-Ban and Oakley smart glasses are, in my eyes, an intermediary step between smartphones and proper AR smart glasses. Meta, as you may know, is working on the On the other hand, Apple CEO The Meta Oakley smart glasses will become available for pre-order in the coming months and cost $399. A limited edition $499 model will be available for ordering from July 11. When the Ray-Ban smart glasses took off, Meta immediately restructured Reality Labs: its XR () division. The idea was to focus much more heavily on similar wearables that are affordable and don't have a display, yet are extremely practical due to strategy has caught the attention of competitors like Apple, which is also experimenting with releasing a similar product. Apple is working on proper AR glasses too, of course, but something like the Oakley and Ray-Ban smart glasses is a currently achievable product that is proven to be in Meta Ray-Ban and Oakley smart glasses are, in my eyes, an intermediary step between smartphones and proper AR smart glasses. Meta, as you may know, is working on the Orion smart glasses . A consumer version is expected to launch around 2027, though a version with a simpler display make come out later this the other hand, Apple CEO Tim Cook is obsessed with making Apple the first company to bring consumer-grade AR smart glasses to market. I'm quite excited to see what these companies are able to offer in a few years, and if they manage to replace the Meta Oakley smart glasses will become available for pre-order in the coming months and cost $399. A limited edition $499 model will be available for ordering from July 11. Grab Surfshark VPN now at more than 50% off and with 3 extra months for free! Secure your connection now at a bargain price! We may earn a commission if you make a purchase This offer is not available in your area. When Meta launched the second-generation Ray-Ban smart glasses in 2023, the company did not foresee just how popular they would become. Following that unprecedented success, today Meta has announced a successor to the Ray-Ban smart glasses: the Oakley AI performance collaboration with Oakley wasn't just for a flashy new design — and they look pretty neat — it's also for enhanced functionality. Meta Oakley smart glasses are built with the outdoors in mind. The glasses have almost double the battery life of the Meta Ray-Ban smart glasses, and come with water resistance as can also record videos in 3K resolution, a way for Meta to encourage more people to use these when they're out having a good time. The standard features of the Ray-Ban glasses — taking photos, making calls, and getting answers from Meta AI to name a few — are also present.
