Mark Zuckerberg's Costly Metaverse Gamble, AI Spending Spree Could Deal 'Lethal' Blow To Meta, Warns Lawrence McDonald
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Lawrence McDonald warns that Meta Platforms Inc. may face severe financial consequences due to its heavy investments in the metaverse and AI. Meta's capital expenditure has surged from $1 billion in 2013 to a projected $69 billion by 2025, indicating a shift towards long-term infrastructure at the expense of short-term profitability. The company's Reality Labs reported $5 billion in losses last quarter, with VR developer salaries significantly higher than industry norms. Rising depreciation-to-capex ratios could further inflate earnings figures, raising concerns about financial sustainability.
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