Most investors in Meta's (META) -) earnings call on July 26 probably came away pretty happy as the social media company reported many positive gains, including an 11% revenue gain year over year and a 34% rise in ad impressions.
That sent the stock surging in pre-market trading on the morning of July 27, with an opening bell price of $322.00 each.
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All that said, one prominent investor is seeing beyond the gains to one business move he doesn't like.
Jim Cramer took to X, the site formerly known as Twitter, to point out what he didn't like about Meta's results -- and he certainly has a point.
without reality labs this would have been the best q facebook meta ever had.. imo
— Jim Cramer (@jimcramer) July 26, 2023
Cramer is referring to the $3.74 billion that Meta lost on Reality Labs in the quarter, which already seems like a lot of money to go down the drain. But when you look at the total Reality Labs has lost since it's 2021 inception -- about $40 billion --it's even more concerning.
While Zuckerberg's obsession with the metaverse has finally faded into the background as the company is embracing the new AI wave, Reality Labs is still moving forward with its VR plans. After its Meta Quest 2 headset was reported to have sold roughly 20 million units as of March 2023, the company has since announced the Meta Quest 3, a lighter version of the headset with better specs.
Cramer has traditionally gone back and forth on Meta, calling investing in the company "ill-advised" in 2022, but then reversing to call it "transformational" after its 2022 Q4 call.
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