Mark Zuckerberg commenced Meta’s earnings call with an in-depth exploration of artificial intelligence, swiftly transitioning into a discussion on the metaverse and highlighting the company’s hardware offerings. However, he didn’t shy away from addressing Meta’s financial hurdles, dedicating the majority of his opening remarks to its significant losses.

Investor response was unfavorable, with Meta shares plummeting by as much as 19% in after-hours trading, resulting in a loss of over $200 billion in market value. This decline occurred despite Meta exceeding expectations in both profit and revenue for the first quarter.

Zuckerberg appeared prepared for the downturn, acknowledging Meta’s historical stock volatility during phases of product scaling without immediate monetization. He drew parallels to past endeavors like Reels and Stories, emphasizing the transition to mobile.

While Meta primarily derives revenue from digital advertising, Zuckerberg focused on future monetization avenues. He discussed the potential of leveraging AI interactions for advertising revenue streams.

Zuckerberg also highlighted Meta’s advancements in AI, including the Meta Llama 3 and the Meta AI, positioning them against competitors like OpenAI’s ChatGPT.

The discussion then pivoted to opportunities in the mixed reality headset market, with emphasis on potential expansions for workplace and fitness applications. The recent opening of Meta’s Quest operating system to developers was cited as a catalyst for growth in the mixed reality ecosystem.

Additionally, Zuckerberg touted Meta’s AR glasses as ideal platforms for AI assistants due to their ability to perceive surroundings.

Despite significant losses in Meta’s Reality Labs unit, Zuckerberg’s cost-cutting measures have instilled confidence among investors. The company’s stock, following a tumultuous 2022, has rebounded significantly.

Looking forward, Meta intends to maintain operational efficiency while increasing investments in AI, anticipating a multi-year cycle before these products become profitable services.

While Meta issued a conservative revenue forecast for the second quarter, Zuckerberg urged investors to consider the long-term potential, emphasizing the historical success of investing in new experiences within Meta’s apps.

In essence, Zuckerberg reassured investors that despite the challenges, Meta’s dedication to AI and emerging technologies will eventually yield substantial returns for those willing to endure the fluctuations.