CMB Stock News Of The Day 📰🗞️🗞️📈📉

“Meta Reportedly Slashing Metaverse & VR Spending by Up to 30% as Focus Shifts to AI” 🚨

Four years after rebranding itself around the “metaverse,” Meta (META) is reportedly preparing to make deep cuts to its virtual reality and metaverse divisions, signaling a major strategic shift away from the vision that once defined the company’s future.

According to a new Bloomberg report, Meta plans to reduce spending on its metaverse and VR programs by as much as 30%, a significant move given how heavily the company has invested in the sector.

Reality Labs Has Burned Through $70 Billion

Meta’s Reality Labs division — home to:

• Quest VR headsets

• Horizon Worlds

• Ray-Ban Meta smart glasses

has lost approximately $70 billion since the company began breaking out the unit’s financials in 2020.

Despite years of investment and ambitious promises, consumer adoption of VR platforms — especially Horizon Worlds — has fallen far short of expectations. The metaverse simply hasn’t gained mainstream traction.

Investors Celebrate the Pivot

Wall Street is applauding Meta’s new direction.

• Shares surged as much as 5% in early trading following reports of the cost-cutting plans.

• Investors appear relieved that Meta is scaling back long-term moonshots in favor of higher-return, more immediate opportunities.

AI Is the New Centerpiece

Meta’s recent hiring spree — poaching top AI researchers and engineers from competitors — confirms what many had suspected:

The company’s focus is now firmly on artificial intelligence.

Its fast-expanding Meta Superintelligence Labs underscores that shift, signaling that the next chapter of Meta’s growth story is tied to:

• Advanced AI models

• AI infrastructure

• AI-driven social platforms

• Competition with OpenAI, Google, and Microsoft

Meta’s decision to pull back from the metaverse marks one of the biggest strategic pivots in tech in recent years. After years of multibillion-dollar losses and lukewarm consumer interest, Meta is repositioning itself for the AI era — and investors are cheering the move.