Is the Metaverse Still a Smart Investment? Meta Thinks So

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Hello and happy Sunday! As the tech world buzzes with developments and investment shifts, we're diving into some major stories shaping the landscape. Today, we explore:

• Meta’s metaverse: Zuck’s cash-burning hobby and its staggering losses.

• Buffett’s strategy: Why Berkshire Hathaway’s cash pile is soaring.

• LinkedIn’s evolution: Quirky features driving financial success.

• Roblox’s growth: The platform’s mature content push.

• Top EU beaches: The latest on the best bathing spots.

Zuck’s Cash-Burning Hobby

Meta’s big bet on the metaverse is burning through cash like there’s no tomorrow. In Q2, their Reality Labs unit reported a $4.48 billion loss, nearly hitting analysts' $4.55 billion forecast 🔥 💵. Since late 2020, Reality Labs has racked up a staggering $50 billion in losses, all part of Zuckerberg’s vision for the next era of computing.

Reality Labs did see some revenue, making $353 million mostly from Quest VR headsets and Ray-Ban smart glasses, up 28% from last year but below the $371 million expected. The Quest 3 VR headset launched in September for $499, while Apple's Vision Pro headset costs $3,500.

With the VR market still heating up, Meta is doubling down on its Ray-Ban smart glasses and even plans to become a shareholder in EssilorLuxottica, Ray-Ban's parent company. Meta’s second-gen smart glasses, priced at $299, hit the scene in October, with Zuckerberg eyeing a big market for stylish AI glasses without displays 😎.

Buffett Can’t Find Anything Attractive

Warren Buffett seems to be cooling on stocks, letting Berkshire Hathaway’s cash pile soar to nearly $277 billion 👀. As of June 30, their cash stash jumped from $189 billion, partly due to selling a big chunk of their Apple shares.

Berkshire’s second-quarter operating profit rose 15% to $11.6 billion, or about $8,073 per Class A share, thanks to strong performance in their insurance and investment businesses. However, net income fell 15% to $30.34 billion, down from $35.91 billion the previous year, even though rising stock prices, including Apple’s, boosted their investment portfolio.

Not As Boring As You May Think

LinkedIn is like a weird mosaic of features, but boy, does it rake in the cash 💰 💰. The Microsoft-owned platform, where people network, job hunt, or post corporate wisdom, has added mini games and AI to make users visit daily. The first games launched in May, and some users were pleasantly surprised by how fun they were, as LinkedIn continues to drift from its work-only roots. The AI features might be less fun, helping employers streamline recruitment and optimize job posts, but LinkedIn execs hope this tech will turn more of their nearly 1 billion members into power users.

Since its launch in 2003 and public debut in 2011, LinkedIn has become a must-have for professionals worldwide. Microsoft bought it for over $26 billion in 2016, a move that puzzled many. Fast forward, LinkedIn pulled in more than $15 billion last year, with $1.7 billion from premium subscriptions and $7 billion from hiring software sales. Adding mini games and AI might sound like something Snapchat or Netflix would do, but it shows LinkedIn's ambition to move beyond the usual "congrats on your new job" posts. Despite the quirky mix, LinkedIn's financial performance is hard to argue with.

Not Only For Kids

Roblox Corp. just had a solid Q2, with revenues up 31% to $894 million, engagement hours jumping 24% to 17.4 billion, and daily active users hitting 79.5 million ⬆️. Despite a dip in shares due to CFO Michael Guthrie stepping down, there’s a lot for Roblox to celebrate. Their push to include more mature content—think horror games, violence, and crude humor—seems to be working. 👏

Roblox has always offered a variety of experiences, from virtual jobs at Ikea to in-game concerts with artists like Charli XCX and Lil Nas X. Last summer, they announced plans to let developers create content exclusively for users over 17. This move has paid off, with the over-13 user group growing by almost 10 million daily active users, compared to a 4.2 million increase for the 13-and-under crowd. It looks like Roblox is growing up with its audience!

If You’re Looking For Bathing Spots

Summer is here, and wild swimmers and beach lovers will be thrilled to know that the European Environment Agency has released its latest report on the health and quality of bathing waters in the EU. ☀️ 🏖️ Cyprus, Austria, Croatia, and Greece are the superstars of 2023, with over 95% of their bathing sites rated as "excellent."

Poland, however, didn’t score as high. But before you cancel your Polish beach trip, remember that 23% of their waters weren’t even assessed. Of those that were, almost 72% were rated "excellent," which is still better than Hungary, Estonia, and Belgium. So, keep your swimsuits ready— plenty of excellent waters to dive into!