Thoughts on How Zuckerberg Can Monetize Meta Reality Labs

Monday’s update concluded with the following:

“Meta has reported more than $38B of operating losses on its AR/VR efforts. The company needs products like Quest 3 and Ray-Ban Meta to do well and generate revenue to reduce pressure on what are mounting losses.”

There is more to say about the mounting losses in Meta’s Reality Labs and why I think generating some revenue is important. We will focus on that topic today. Our Big Tech earnings reviews will continue tomorrow.

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Meta 4Q23 Earnings, Estimating Meta Quest 3 Sales, Ray-Ban Meta and AI

There are several Big Tech earnings reports for CY4Q23 worth going over. For those of you who recently became Above Avalon members, my approach to covering Big Tech earnings is twofold:

  • Assess how Apple competitors are doing from a financial/business perspective. This will involve looking at revenue growth metrics, cash flow generation, etc. Given major differences in business models, the metrics will need to be put into proper prospective. 

  • Look for developments that shine light on competitive dynamics that stand to impact Apple. This may include everything from advertising to hardware.  

Today’s update will be dedicated to Meta, a company that is turning into one of Apple’s most direct competitors. 

An Above Avalon membership is required to read this update. Members can read the full update here. (Members: Daily Updates are accessible via the archive. If you haven’t logged into the archive before, fill out this form to receive an invite.)

Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time.

An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here. Special Inside Orchard bundle pricing is available for Above Avalon members. Additional membership customization is available via the Financial Models add-on.