Meta Platforms Inc (NASDAQ: META) is up more than 5.0% on Monday even after internal documents signalled Horizon Worlds – its flagship metaverse was struggling to grow the number of monthly active users.
Gene Munster reacts to the news on CNBC
MAUs on Horizon Worlds are still lingering in the sub 200,000 versus 500,000 the multinational was targeting for the end of 2022. Reacting to the news on CNBC’s “Squawk Box”, Loup Ventures’ Gene Munster said:
I would have expected the number to be a million by this time. So, this is a very clear disappointment for investors, which begs the question; how far are we from the metaverse actually taking off.
Meta Platforms is yet to officially respond.
The Nasdaq-listed firm is scheduled to report its Q3 results next week. Consensus is for it to earn $1.82 this quarter – sharply below last year’s $3.22.
Users are not returning after first month
More alarmingly, the number of users on Horizon Worlds has steadily lowered since spring as the majority of users never showed up again after their first month on the metaverse.
Most of the worlds, the internal documents suggest, remain unvisited to date. Munster added:
These headsets, the cheapest ones are $400 to get into the metaverse. That’s expensive. They need to get down to a $100 price point before you really get some major lift here.
Still, he continues to be bullish on the long-term potential of the metaverse play. For now, though, Munster owns the Meta stock for its core business.
Last week, Meta unveiled Quest Pro – its latest virtual reality headset that costs $1,500. (find out more)