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CEO of Meta, Mark Zuckerberg, has unveiled several uncompleted metaverse headsets being built in its lab.
Meta Platforms Inc (NASDAQ: META) has been holding these presentations constantly in the last few years to show the progress with its virtual reality headsets and augmented reality glasses. There are suggestions the presentation may be to attract funding from new investors. The presentations also sparked the interest of developers and executives in the projects.
In this regard, Meta stands alone. Most gadget companies prefer to tease the completed project. For instance, Apple Inc (NASDAQ: AAPL), which is also working on its VR headsets, has never shown off any prototype metaverse headsets.
Metaverse Headsets Near Completion
In the recent presentation, Zuckerberg teased five new metaverse headsets named Butterscotch, Half Dome 3, Holocake 2, Starbust, and Mirror Lake. Zuckerberg pointed out that they were trying to fix four problems related to resolution, focal depth, distortions, and dynamic range. Zuckerberg believes they will soon be able to ‘create scenes in basically perfect fidelity’.
Despite the obvious progress, Zuckerberg noted that the products are not ready for the market yet. “These prototypes, they’re custom and bespoke models that we built in our lab, so they’re not products that are ready to ship,” Zuckerberg added.
Meta Stocks Continue Downtrend
Since pivoting its operations and rebranding as Meta, the metaverse. However, investors do not seem as enthusiastic about something analysts think is still mere fantasy. Forbes also reported a drop in interest in the metaverse and web3 in March.
Since the rebrand, the company’s users have declined. The first-quarter earnings posted by the company showed that Meta’s stock declined. Meta’s year-to-date earnings were down over 53%, and the stocks were trading at $157.05 at the time of writing. Its research and development lab, Reality Labs, also posted a $10.2 billion loss in 2021.
After the demonstration on Monday, the stocks plummeted further, dropping by 4% despite a market rallying of tech stocks. There are fears that the company is incurring too many expenses while its revenue is down because of increased competition from TikTok and Apple’s iPhone privacy changes. The company’s growth forecast is also not impressive.
Invariably, it means that except Meta’s investment in the metaverse begins to yield products, investors’ confidence may not be restored.