What does it mean when a company “burns through money”? Where does the money go?

Question

I read [this article](https://kotaku.com/facebook-metaverse-vr-2022-billions-13-billion-quest-2-1850062517) this morning about how ~~Facebook~~ Meta’s VR division “Lost $13.72 Billion In 2022”. The article later says that Meta is burning through money. But if they’re spending money to generate a product, doesn’t that money go somewhere? If Meta doesn’t have the $14 billion, who does?

In: 0

Answer 1

You may be taking the idiom “burns through money” too literally. All it means is that they are spending much more money than they are generating in revenue. And that is not a sustainable business model.