Meta's Earnings Beat Masks Underlying Concerns

Meta Platforms delivered another strong quarter, beating revenue and earnings estimates. However, a closer look at the numbers reveals some areas that warrant attention, including rising costs and slowing user growth in key demographics.

The company's Reality Labs division continues to burn cash at an accelerating rate, with losses widening to $5.2 billion in the quarter. While management remains committed to the metaverse vision, investors are growing impatient.