Meta's metaverse-related Reality Labs lost $3.7 billion in the third quarter, taking losses this year to $9 billion, and a digital ads slowdown is hitting ...
That takes its total losses this year to $9 billion, and to almost $20 billion since the start of 2021. Google parent Alphabet's shares tumbled 9.6% Wednesday after its quarterly earnings report, as analysts warned that a decline in its YouTube and Google Network revenue pointed to more pain ahead. Its revenue for the quarter came in at $27.71 billion, compared with a $27.38 billion target, as sales dropped by 4%. That drop significantly outpaces the benchmark Shares in Meta were 20% lower at $103.79 at last check in premarket trading. It also reported billions of dollars of losses for its metaverse-linked Reality Labs unit, an investment that has come under fire from analysts.
Meta, the parent company of Facebook and more, has reported its Q3 earnings for 2022. Share prices fell below $100 since 2016.
[Learn more](https://lcncsummit.venturebeat.com/page/2309397/register?utm_source=vb&utm_medium=speedbump&utm_content=Registration&utm_campaign=Speedbump). Reality Labs, which is developing the technology that underpins its [metaverse](https://venturebeat.com/virtual/the-creation-of-the-metaverse-whats-real-whats-hype-and-where-were-headed/) plans, has lost $9.4 billion in 2022 so far. We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. This marks a [second straight quarter of decline](https://venturebeat.com/games/meta-reports-q2-operating-loss-of-2-8b-for-its-metaverse-division/). Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Following the Q3 earnings call, Meta is trading at about 5-times its EBITDA. This often called a EV/EBITDA multiple. [Meta](https://venturebeat.com/ai/metas-new-make-a-video-signals-the-next-generative-ai-evolution/) has released its [Q3 earnings report](https://investor.fb.com/investor-events/event-details/2022/Q3-2022-Earnings/default.aspx) after stock markets closed Wednesday, reporting $27.7 billion of revenue. When a company is growing, investors will pay much more for stock than what the underlying company is earning today. This shows that investors see Meta as a mature company in its current form, not a growth engine. In Q3 2021, Meta brought in $9.55 billion after operating and capital expenses. Meta has doubled its capital expenditures compared to Q3 last year.
Meta Plummets 25%; Zuckerberg Plea for 'Patience' Falls Flat · Shares slump after revenue falls, forecast disappoints · Costs are skyrocketing as CEO bets big on ...