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
UAE sets minimum social media age at 15, mandates age checks
The government said the measures were designed to address concerns over children’s exposure to inappropriate content, unsafe online interactions, excessive social media use and the collection of personal data.
The United Arab Emirates has set a minimum age of 15 for social media use, becoming the first Arab country to introduce such a restriction as governments worldwide seek to address growing concerns over the impact of online platforms on children.
Under a resolution approved on Thursday, children under 15 will be prohibited from creating, using or operating personal social media accounts. The ban means they will not be able to post content, comment, share or join public groups, the government’s media office said, Reuters reported.
Teenagers aged 15 and 16 will be allowed to use social media platforms subject to enhanced safeguards, including age-appropriate content controls, restrictions on interaction with unknown users, screen-time management tools and parental supervision features.
The rules apply to all social media platforms operating in the UAE and require companies to implement robust age-verification measures, including digital identity checks and artificial intelligence-supported technologies. Self-declaration of age will not be accepted as a valid form of verification.
Platforms must also disable accounts created by children under 15, prevent users from circumventing age-verification systems and refrain from using children’s personal data for targeted advertising or behavioural profiling.
The government said the measures were designed to address concerns over children’s exposure to inappropriate content, unsafe online interactions, excessive social media use and the collection of personal data.
Social media companies will have up to 12 months to comply with the new regulations.
The UAE said the framework aligns with international efforts to strengthen online child protection while balancing digital access with safety.
Several countries, including Australia and others in Europe, have moved to tighten restrictions on children’s use of social media amid mounting concerns about its effects on mental health and online safety.
Regional
Iran banks hit by major cyber attack
Officials said a technical investigation confirmed that the disruptions were the result of a cyberattack.
Several major Iranian banks experienced service disruptions on Saturday following a cyberattack, according to the Coordinating Committee of Iran’s state-owned banks.
The outage affected four major financial institutions, including Bank Melli Iran, Bank Saderat Iran, and Bank Tejarat, causing interruptions to mobile and online banking services, automated teller machines (ATMs), point-of-sale (POS) terminals, and some card transactions.
Officials said a technical investigation confirmed that the disruptions were the result of a cyberattack.
The affected banks stated that their technical teams immediately implemented precautionary measures after detecting the incident in an effort to safeguard customer information and protect banking infrastructure.
Qatasi, secretary of the Coordinating Committee of Iran’s state-owned banks, said necessary recovery and repair measures had been carried out.
Authorities said there is currently no evidence that customer data was accessed without authorization, and no data breach has been reported.
Science & Technology
GLP-1 drugs may have a beneficial effect across many types of cancer
The drugs, originally designed to treat diabetes and found to promote weight loss, have also shown benefits for heart risks, sleep apnea and alcohol and substance abuse.
A growing body of evidence suggests that popular GLP-1 drugs, widely used for weight loss and diabetes, can provide protection against many types of cancer, Reuters reported.
More than two dozen studies presented over the past few days at the American Society of Clinical Oncology meeting in Chicago found that patients taking the drugs showed lower risks of developing cancer and disease progression, better survival, and improved responses to some treatments, compared with people who were not taking the GLP-1s.
The studies included analyses of clinical records and real-world databases tracking patients taking Novo Nordisk’s (NOVOb.CO), Wegovy or Ozempic, Eli Lilly’s (LLY.N), Zepbound or Mounjaro, or older GLP-1 treatments.
The studies were not designed to show how or why GLP-1 use might affect cancer treatment. But researchers believe by reducing inflammation, regulating insulin signaling and possibly engaging directly with tumor biology, they may contribute to a protective effect in cancer patients.
“Chronic inflammation is a fundamental biological pathway involved in the development and progression of many cancers,” said Dr. Elizabeth Susan McDonald of the University of Pennsylvania.
McDonald on Tuesday reported on a study of 110,000 women, showing those who took GLP-1 medications were up to 35% less likely to develop breast cancer than those who did not.
While obesity itself is a known risk factor for certain cancers, the anti-inflammatory effects of GLP-1s will likely prove to have a role in cancer prevention, McDonald said.
GLP-1 drugs include semaglutide, the active ingredient in Wegovy, Ozempic and Rybelsus; tirzepatide, sold as Mounjaro and Zepbound, as well as Lilly’s Trulicity, or dulaglutide, and Novo’s older liraglutide, sold as Saxenda and Victoza.
Some of the strongest signals of benefit came from a study of more than 12,000 patients that showed GLP-1 use was associated with markedly lower odds of cancers advancing to metastatic disease, particularly in lung, breast, colorectal and liver cancers.
People with those cancers who took liraglutide, pramlintide, dulaglutide, tirzepatide, lixisenatide, or semaglutide were 38% to 50% less likely to see the disease spread than people who took drugs from a different class of diabetes medicines known as gliptins.
Reduced cancer incidence, longer survival, and fewer metastases were also seen with GLP-1 use in patients with endometrial, bladder and prostate cancers, as well as in those with small intestine neoplasms and blood cancers, multiple studies found.
A separate analysis of patients treated at U.S. community oncology practices found GLP-1 use was associated with significantly better overall survival across six tumor types – breast, prostate, colorectal, lung, liver and kidney – with a roughly one-third reduction in the risk of death.
Researchers also reported that cancer patients receiving immunotherapies such as Merck’s (MRK.N), Keytruda and Bristol Myers Squibb’s (BMY.N), Opdivo or Yervoy appeared to fare better when they were taking GLP-1 drugs, suggesting a possible interaction with the immune system.
GLP-1 users with type 2 diabetes and stage 3 kidney disease had substantially lower mortality and lower rates of several malignancies, particularly lung, colorectal, and hepatocellular cancers, than non-users, read the report.
While GLP-1 medications carry a warning regarding a possible association with a type of thyroid cancer based on rodent studies, researchers say the recent findings point to a potential beneficial class effect across tumor types, rather than benefits confined to a small subset of cancers.
The drugs, originally designed to treat diabetes and found to promote weight loss, have also shown benefits for heart risks, sleep apnea and alcohol and substance abuse.
“These drugs have never been just glucose-lowering agents,” Dr. Marcin Chwistek of the Fox Chase Cancer Center in Philadelphia said at an ASCO press briefing.
Researchers cautioned that nearly all of the data presented were from observational studies, raising the risk of confounding factors. Patients prescribed GLP-1 drugs may differ in important ways, including overall health, access to care and concurrent treatments, that could influence outcomes.
While the various studies tried to account for those differences, none can prove the drugs improve cancer outcomes. Experts said trials in which GLP-1s are added to standard treatment in some cancer patients but not others are needed to establish clear anti-cancer benefits. Some trials are already being planned.
The apparent cancer benefits were not clearly tied to the drugs’ weight-loss effects, suggesting that alone does not explain the findings, Reuters reported.
A seven-year study with nearly 120,000 participants found GLP-1s were associated with lower rates of new prostate cancer diagnoses in high-risk men, compared to drugs such as Merck’s Propecia and GSK’s (GSK.L), Avodart, which are used to shrink enlarged prostate glands.
GLP-1 users had a “very small” reduction in body weight at one year, said Dr. Colton Jones of the University of Texas San Antonio Mays Cancer Center who presented the study at ASCO.
“We hypothesize that both weight loss and a direct anti-cancer effect and anti-inflammatory effect may be driving the associations observed in our study,” Jones said.
ASCO expert Chwistek said anti-inflammatory and immune-modulating properties have long suggested broader effects of GLP-1s.
Referring to one of the largest studies, Chwistek said: “What’s new here is the consistency across tumor types, and data this large and this consistent warrant a prospective randomized trial.”
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