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04-02-2022|Crypto

Metaverse stocks Nvidia and Roblox are down as Meta's Web3 division, which is owned by Facebook, suffers a massive loss.

  • A large loss at Meta's Web3 subsidiary, which is owned by Facebook, prompted a sell-off in metaverse equities.
  • Nvidia, a chipmaker, and Roblox, a game platform, both slumped after the results release.
  • On Thursday, Meta's market worth plummeted by more than $200 billion.

After Facebook-owned Meta revealed a significant loss in its Web3 division, Metaverse equities including Roblox, Matterport, and Nvidia suffered a reality check.

Reality Labs, the division underlying Meta's metaverse technology, projected a $10 billion operating loss and a revenue miss for 2021, according to Meta's fourth-quarter numbers, which were released late Wednesday.

Companies like gaming platform Roblox, chipmakers Nvidia and Skyworks, software giant Adobe, finance startup Block, and game-software producer Unity all suffered as a result of the research.

Roblox, a computer game for creating digital worlds, dropped as much as 9% to $60.17 on Thursday, extending a year-to-date decline of about 38%. The stock has fallen below its initial public offering price of $64.50, which was set over a year ago when the company went public through a direct listing.

Matterport's stock dropped 6% as the company's technology is used to turn "real-life spaces into immersive digital twin simulations." Nvidia and Skyworks, two companies that create chips that power virtual worlds, have had their stock prices fall by as much as 3% and 4%, respectively.

Block, the payments company that used to be known as Square, has been focusing more on bitcoin and blockchain, the technology that underpins cryptocurrencies and the Web3 (future internet). The company's stock dropped as much as 8.3 percent to $104.30. Meanwhile, Adobe and Unity, which have been termed good metaverse software plays, have dropped 3.6 and 7%, respectively.

Nintendo, a Japanese video game corporation, fell by 2%. Despite the company's caution in investing in virtual worlds, some analysts believe it is an undervalued metaverse stock, according to CoinDesk.

Facebook's stock dropped 26% on Thursday, wiping off more than $200 billion in market value and wiping billions off the net worth of Facebook CEO Mark Zuckerberg. The Nasdaq plummeted as much as 2.7 percent as a result of the terrible Meta earnings.

The firm that used to be known as Facebook changed to Meta last year as part of its drive into the metaverse, a virtual world where users may communicate as avatars. Critics have said that Facebook's parent company is lagging behind other corporations that are already investing in virtual worlds, while others have claimed that the metaverse is supposed to be owned by people rather than corporate behemoths.

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