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Meta's Reality Labs posts $5 billion loss in fourth quarter

1. Meta reported a $4.97 billion loss in Reality Labs, with $1.1 billion in sales. 2. Total losses for Reality Labs exceed $60 billion since 2020, raising concerns. 3. Meta plans to invest $60-65 billion in AI to support metaverse efforts. 4. Orion AR headset and new Quest 3S are part of Meta's VR/AR strategy. 5. Competitors like Apple and Google are advancing in VR and AR technologies.

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Why Bearish?

The ongoing losses in Reality Labs may deter investor confidence, mirroring concerns seen with past investments in unprofitable ventures.

How important is it?

The article details Meta's significant financial challenges and strategic investments which directly impact its market position.

Why Long Term?

Continued losses and heavy investments signal a longer-term concern; similar patterns have affected Meta's stock in past earnings.

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