- Meta said it might accelerate spending by 15% next year.
- Meta currently faces a number of headwinds, including a potential recession and a slowdown in the advertising market.
Meta told investors it plans to ramp up spending next year, despite the fact that the company faces a $4 and a potential economic recession.
The company's, $4 to the metaverse has been met with a growing chorus of opposition from analysts and at least one prominent investor in the company, yet Meta's third-quarter results show it's plowing ahead.
Meta's metaverse-focused Reality Labs division reported an operating loss of $3.7 billion and saw revenue fall 49% from the prior year to $285 million.
Meta forecasted that its expense guidance for 2023 would be between $96 billion to $101 billion, which is about 15% higher than what the company said it would spend in 2022.
Meta's decision to accelerate spending comes amid an advertising market slowdown. The company reported that its price-per-ad decreased by 18% since last year — and a potential recession.
Meta's increase in spending also goes against the wishes of at least one of its prominent investors.
Brad Gerstner, an investor at Altimeter Capital, $4 to the company earlier this week urging Mark Zuckerberg to cut the company's expenses.