CEO Mark Zuckerberg's massive bet on the metaverse initially seemed like a terrible idea. Only a year after he announced the company's plan to change its name from Facebook to Meta Platforms (NASDAQ: META) at Connect 2021, the stock plummeted 72% to $88.09.

In addition to threats from TikTok to its social media dominance and a terrible economy, investors were heavily concerned about the enormous potential financial losses associated with the metaverse concept. For example, during the first quarter of 2023, Meta's Reality Labs division incurred a loss of $4 billion. Given that the metaverse concept is still in its nascent stages, it seems unlikely that Reality Labs will be able to curtail its losses anytime soon.

Although the company's move to build virtual worlds is precarious, it could turn out that Zuckerberg's pivot toward the metaverse could be his best decision. Here's why.

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Source Fool.com