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Facebook owner Meta to lift veil off its metaverse business

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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.

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Meta turns off Instagram’s private messaging encryption worldwide

Meta said the decision was based on low user adoption, though critics argue optional privacy tools often see limited use because users must manually activate them.

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Instagram has disabled its end-to-end encrypted (E2EE) direct messaging feature worldwide, marking a major reversal by parent company Meta on its previous commitment to stronger user privacy protections.

The move means Instagram users can no longer send ultra-private direct messages protected by E2EE — a security system that allows only the sender and recipient to read messages. Without the feature, Instagram can technically access the content of direct messages, including photos, videos and voice notes.

Meta had previously promoted encryption as “the future is private.” In 2019, CEO Mark Zuckerberg pledged to expand the technology across the company’s platforms.

Facebook Messenger adopted E2EE in 2023, while Instagram introduced it as an optional feature with plans to make it standard.

However, Meta has now abandoned the wider Instagram rollout and updated the app’s terms in March to confirm encrypted messaging would no longer be supported after 8 May 2026.

Meta said the decision was based on low user adoption, though critics argue optional privacy tools often see limited use because users must manually activate them.

The move has divided opinion. Child protection groups, including the NSPCC, welcomed the change, saying encryption can make it harder to detect child grooming and abuse online.

Privacy advocates criticised the decision. Maya Thomas of Big Brother Watch warned the move weakens online privacy protections and could increase pressure on other social media companies to scale back encryption.

End-to-end encryption remains standard on platforms including WhatsApp, Signal, Apple’s iMessage and Google Messages, while other platforms continue to take mixed approaches to private messaging.

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James Webb Telescope captures clearest-ever view of exoplanet’s surface

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Astronomers using NASA’s James Webb Space Telescope have obtained the clearest view yet of the surface of a rocky exoplanet, revealing a scorched, atmosphere-free world that scientists say resembles a giant version of Mercury.

The planet, known as LHS 3844 b and nicknamed “Kua’kua,” appears to be a barren, uninhabitable world with extreme temperature swings and no detectable atmosphere, according to a study published this week in Nature Astronomy.

Researchers said the planet’s surface is likely covered in dark volcanic rock and ancient regolith — loose rocky debris formed over billions of years from relentless bombardment by radiation and micrometeorite impacts.

“This planet is not a nice place,” said astronomer Laura Kreidberg, senior author of the study. “It’s a hellish, barren rock — much more similar to Mercury than Earth.”

Located about 49 light-years away, LHS 3844 b orbits a small red dwarf star and completes a full orbit every 11 hours. The planet is tidally locked, meaning one side permanently faces its star while the other remains in darkness — similar to how the Moon always shows the same face to Earth.

Scientists found the planet’s dayside reaches roughly 1,340 degrees Fahrenheit (725 degrees Celsius), while the nightside showed almost no detectable heat.

Using Webb’s infrared instruments, researchers were able to directly analyze light coming from the planet’s surface — a major breakthrough for exoplanet science.

“Different rocks have different spectral fingerprints,” said lead author Sebastian Zieba. “Dark volcanic rocks like basalt matched our observations much better than brighter rocks like granite.”

The findings mark a new phase in exoplanet research, shifting beyond atmospheric studies toward direct analysis of alien geology and surface composition.

Since becoming operational in 2022, the Webb telescope has transformed scientists’ understanding of planets beyond the solar system, helping identify atmospheric chemistry, weather patterns and now even the nature of distant planetary surfaces.

Researchers said the absence of an atmosphere on LHS 3844 b means there is little protection from stellar radiation and virtually no possibility of liquid water — a key ingredient for life.

“So overall, this is almost certainly not a habitable world,” Zieba said.

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Afghanistan launches first 5G trial in Kabul to boost telecom services

According to ministry spokesperson Enayatullah Alokozai, AWCC has upgraded 74 telecom antennas in Kabul to 5G on a trial basis.

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Afghanistan has launched its first-ever 5G telecommunications trial in Kabul, marking a major milestone in efforts to modernise the country’s digital infrastructure.

The announcement followed a meeting between Hamdullah Nomani, Minister of Communications and Information Technology, and Aliullah Sarwari, head of the Afghan Wireless Communication Company (AWCC), where discussions focused on expanding telecom coverage, improving service quality, and extending connectivity to remote regions.

According to ministry spokesperson Enayatullah Alokozai, AWCC has upgraded 74 telecom antennas in Kabul to 5G on a trial basis. Once technical preparations and testing are completed, the company plans to extend 5G services to other provinces.

Officials also reported steady progress on broader infrastructure development. Eight telecom sites approved during previous official visits to northern and southeastern provinces have been completed, one is nearing completion, and construction continues on two additional sites expected to become operational soon.

In parallel, the Afghanistan Telecom Regulatory Authority (ATRA) has approved eight more telecom sites under the Telecom Development Fund (TDF), with implementation scheduled in the coming months.

Sarwari noted that since the beginning of 2026, AWCC has built and activated 46 telecom sites using its development budget, while work continues on a further 186 sites nationwide.

He also thanked the Ministry of Communications and Information Technology for its ongoing support in facilitating sector growth and improving service delivery.

Nomani meanwhile emphasised that telecommunications play a crucial role in national development and said the government remains committed to working closely with operators to expand modern, high-quality digital services.

Officials added that cooperation between the ministry, regulators, and telecom companies will continue across all operational and regulatory areas to strengthen Afghanistan’s communications network.

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