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?
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Large companies like Meta will have existing product revenue but also invest into many different projects/products for the future. The company will have a strategy of reinvesting a portion of their revenue to fund these projects (which are usually NOT making a lot of revenue if any).
In some circumstances, say a pandemic, war or global energy crisis, the assumptions built into current revenue and future project revenues have to be revised. But these projects will continue to need funding (salaries, labs, etc) unless they are suspended or canceled, which any company would be reluctant to do since these projects are there for future growth.
There are, therefore, times when changing conditions cause current expenses to far outpace current revenues and the company will lose money.
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