Meta Platforms, Inc. (NASDAQ:META) earns enough from its apps to fund a business that loses billions of dollars each quarter. That financial capacity gives Reality Labs time to develop. It does not answer whether the investment can eventually earn an attractive return. The stock decision depends partly on how much value investors assign to that option and how long they will finance it. Reality Labs generated $431 million of second-quarter revenue and a $4.62 billion operating loss. Its first-half loss was $8.65 billion. At Meta's September 30 market capitalization of approximately $1.85 trillion, these losses are large enough to affect valuation, though they remain smaller than the profit of its established apps.
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