Meta shares rise as report details 30% cut to metaverse budget
Investors cheer the reallocation of resources from virtual reality to generative AI infrastructure.
A strategic pivot to AI
Meta Platforms stock rose 1.8% on Friday to close at $673.42 following reports that the company plans to slash the budget of its Reality Labs division by up to 30% in 2026. Bloomberg reported late Thursday that CEO Mark Zuckerberg discussed the cuts during planning meetings in Hawaii, signaling a definitive move away from the capital-intensive "Metaverse" strategy that has cost the company over $70 billion since 2021.
Reallocating capital
The market reaction suggests investors view the cuts as a necessary "disciplining" of capital. The savings from the Reality Labs reduction—which will affect …
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