Science & Technology
Facebook owner Meta to lift veil off its metaverse business
Since October, Facebook has renamed the company, articulated a vision of the internet where people can digitally connect through virtual-reality avatars or teleport to see places like ancient Rome, and helped trigger the metaverse investment craze.
When the company, now Meta Platforms Inc, reports fourth-quarter results on Wednesday, investors will get a new window into the financial impact of CEO Mark Zuckerberg’s current passion.
Meta plans to break out the results of its augmented and virtual-reality hardware unit, Reality Labs, for the first time, an investment the company previously warned would cause a $10 billion hit to 2021 profit and would not be profitable “any time in the near future.”
The company is hiring engineers and buying up multiple virtual reality gaming studios to build toward the metaverse, which is a broad futuristic idea of shared virtual realms that can be accessed via different devices and which Zuckerberg is betting will be the successor to the mobile internet.
Analysts said they would be keen to see indicators about the Reality Labs division’s profitability, how long it might be a drag on the advertising side, and evidence around the strength of VR headset sales.
“It’s going to be huge for me as an analyst, not having to surgically dig through Facebook earnings … and just see a lens into the Reality Labs,” said VR market analyst Stephanie Llamas of VoxPop.
Meta has said it expects non-advertising revenue to be down year-over-year in the fourth quarter as it compares unfavorably with the “strong launch” of its VR Quest 2 headsets during the previous year’s holiday shopping season.
The company has not released sales numbers for Quest headsets, but a July recall notice for the Quest 2’s facial foam liners said it affected about 4 million units in the United States. In a sign of strong sales for the headsets during the recent holiday period, its Oculus app hit the top spot on the U.S. App Store for free iPhone apps on Christmas Day.
‘SIGNIFICANT UNCERTAINTY’
Front-of-mind for investors, though, will be how Meta’s core digital advertising business is faring, after the tech giant said in October it faced “significant uncertainty” in the fourth quarter.
The company, which has the second-largest digital ad platform in the world after Alphabet Inc’s Google, warned it could face continued hits from Apple Inc’s privacy changes which have made it harder for brands to target and measure their ads on Meta’s social media services Facebook and Instagram. Analysts said Meta had set the bar low for its coming earnings, but questions remained about these effects and about issues related to the COVID-19 pandemic.
“The Apple tracking change clearly had a negative impact on Facebook in the September quarter,” said Evercore ISI analyst Mark Mahaney. “The question is, were they able to further mitigate that risk … or did it become bigger?”
Pedro Palandrani, a research analyst at Global X, said the metaverse was the “long-term story” but in the near term investors would look for how Meta navigates Apple’s policy as well as e-commerce updates and ways to monetize messaging or features like its short video offering, Reels.
Meta, which reported 2020 revenue of about $86 billion, has yet to explain in detail how it will make money in the metaverse. In November, it pointed to potential opportunities for brands, from immersive shops to running paid mixed-reality events. The company has invited a group of ad execs to discuss its brand change and its plans for the metaverse at a virtual roundtable next month.
Meta is expected to report revenue of $33.38 billion, according to Wall Street estimates, up 18.9% year over year, and is expected to post quarterly earnings per share of $3.84, a slight decline. The company has said it expects total 2021 expenses to come in at $70 billion-$71 billion and full-year 2022 expenses to reach $91 billion-$97 billion.
Science & Technology
Russia plans a nuclear power plant on the moon within a decade
Russia plans to put a nuclear power plant on the moon in the next decade to supply its lunar space programme and a joint Russian-Chinese research station, as major powers rush to explore the earth’s only natural satellite.
Ever since Soviet cosmonaut Yuri Gagarin became the first human to go into space in 1961, Russia has prided itself as a leading power in space exploration, but in recent decades it has fallen behind the United States and, increasingly, China, Reuters reported.
Russia’s ambitions suffered a massive blow in August 2023 when its unmanned Luna-25 mission smashed into the surface of the moon while attempting to land, and Elon Musk has revolutionised the launch of space vehicles – once a Russian speciality.
IS THAT A NUCLEAR REACTOR ON THE MOON?
Russia’s state space corporation, Roscosmos, said in a statement that it planned to build a lunar power plant by 2036 and signed a contract with the Lavochkin Association aerospace company to do it.
Roscosmos did not say explicitly that the plant would be nuclear but it said the participants included Russian state nuclear corporation Rosatom and the Kurchatov Institute, Russia’s leading nuclear research institute.
Roscosmos said the purpose of the plant was to power Russia’s lunar programme, including rovers, an observatory and the infrastructure of the joint Russian-Chinese International Lunar Research Station.
“The project is an important step towards the creation of a permanently functioning scientific lunar station and the transition from one-time missions to a long-term lunar exploration programme,” Roscosmos said.
The head of Roscosmos, Dmitry Bakanov, said in June that one of the corporation’s aims was to put a nuclear power plant on the moon and to explore Venus, known as earth’s “sister” planet.
The moon, which is 384,400 km (238,855 miles) from our planet, moderates the earth’s wobble on its axis, which ensures a more stable climate. It also causes tides in the world’s oceans.
U.S. ALSO PLANS A REACTOR ON THE MOON
Russia is not the only one with such plans. NASA in August declared its intent to put a nuclear reactor on the moon by the first quarter of fiscal year 2030.
“We’re in a race to the moon, in a race with China to the moon. And to have a base on the moon, we need energy,” U.S. Transport Secretary Sean Duffy said in August, when asked about the plans.
He added that the United States was currently behind in the race to the moon. He said energy was essential to allow life to be sustained on the moon and thence for humans to get to Mars.
International rules ban putting nuclear weapons in space but there are no bans on putting nuclear energy sources into space – as long as they comply with certain rules.
Some space analysts have predicted a lunar gold rush: NASA says there are estimates of a million tonnes of Helium-3, an isotope of helium that is rare on earth, on the moon.
Rare earth metals – used in smartphones, computers and advanced technologies – are also present on the moon, including scandium, yttrium and the 15 lanthanides, according to research by Boeing.
Science & Technology
Australia social media ban set to take effect, sparking a global crackdown
For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.
Australia is set to become the first country to implement a minimum age for social media use on Wednesday, with platforms like Instagram, TikTok and YouTube forced to block more than a million accounts, marking the beginning of an expected global wave of regulation.
From midnight, 10 of the biggest platforms will be required to block Australians aged under 16 or be fined up to A$49.5 million ($33 million), Reuters reported.
The law received harsh criticism from major technology companies and free speech advocates, but was praised by parents and child advocates.
The rollout closes out a year of speculation about whether a country can block children from using technology that is built into modern life. And it begins a live experiment that will be studied globally by lawmakers who want to intervene directly because they are frustrated by what they say is a tech industry that has been too slow to implement effective harm-minimisation efforts.
Governments from Denmark to Malaysia – and even some states in the U.S., where platforms are rolling back trust and safety features – say they plan similar steps, four years after a leak of internal Meta (META.O) documents showed the company knew its products contributed to body image problems and suicidal thoughts among teenagers while publicly denying the link existed.
“While Australia is the first to adopt such restrictions, it is unlikely to be the last,” said Tama Leaver, a professor of internet studies at Curtin University.
“Governments around the world are watching how the power of Big Tech was successfully taken on. The social media ban in Australia … is very much the canary in the coal mine.”
A spokesperson for the British government, which in July began forcing websites hosting pornographic content to block under-18 users, said it was “closely monitoring Australia’s approach to age restrictions.”
“When it comes to children’s safety, nothing is off the table,” they added.
Few will scrutinise the impact as closely as the Australians. The eSafety Commissioner, an Australian regulator tasked with enforcing the ban, hired Stanford University and 11 academics to analyse data on thousands of young Australians covered by the ban for at least two years.
Though the ban covers 10 platforms initially, including Alphabet’s (GOOGL.O), YouTube, Meta’s Instagram and TikTok, the government has said the list will change as new products appear and young users switch to alternatives.
Of the initial 10, all but Elon Musk’s X have said they will comply using age inference – guessing a person’s age from their online activity – or age estimation, which is usually based on a selfie. They might also check with uploaded identification documents or linked bank account details.
Musk has said the ban “seems like a backdoor way to control access to the internet by all Australians” and most platforms have complained that it violates people’s right to free speech.
For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.
Platforms say they don’t make much money showing advertisements to under-16s, but they add that the ban interrupts a pipeline of future users. Just before the ban took effect, 86% of Australians aged 8 to 15 used social media, the government said.
“The days of social media being seen as a platform for unbridled self-expression, I think, are coming to an end,” said Terry Flew, the co-director of University of Sydney’s Centre for AI, Trust and Governance.
Platforms responded to negative headlines and regulatory threats with measures like a minimum age of 13 and extra privacy features for teenagers, but “if that had been the structure of social media in the boom period, I don’t think we’d be having this debate,” he added.
Science & Technology
Ethiopian volcano erupts for first time in nearly 12,000 years
Ash from the eruption drifted across the region, spreading over Yemen, Oman, India, and parts of Pakistan.
The Hayli Gubbi volcano in Ethiopia’s Afar region has erupted for the first time in almost 12,000 years, sending massive ash plumes soaring up to 14 kilometres into the atmosphere, according to the Toulouse Volcanic Ash Advisory Centre.
The eruption began on Sunday and lasted several hours. Hayli Gubbi, located around 800 kilometres northeast of Addis Ababa near the Eritrean border, sits within the geologically active Rift Valley, where two major tectonic plates meet. The volcano rises roughly 500 metres above the surrounding landscape.
Ash from the eruption drifted across the region, spreading over Yemen, Oman, India, and parts of Pakistan. Satellite imagery and social-media videos captured a towering column of white smoke billowing into the sky.
The Smithsonian Institution’s Global Volcanism Program notes that Hayli Gubbi has no recorded eruptions during the Holocene, the period dating back about 12,000 years to the end of the last Ice Age.
Volcanologist Simon Carn of Michigan Technological University also confirmed on Bluesky that the volcano had “no record of Holocene eruptions.”
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