The Meta stock rose about 4% on Thursday, after a Bloomberg article reported major budget cuts in the company's metaverse division. According to sources close to the matter, executives are considering cutting spending by up to 30% for this unit, in addition to layoffs. These adjustments would be discussed as part of the 2026 budget planning.
This potential reversal marks a strategic shift for Meta, which had made the metaverse a priority in 2021 by renaming the company and vowing to make it the new frontier of the digital world. Since then, this orientation has lost visibility in favor of artificial intelligence, now central to the group's ambitions. The disappointing results of the metaverse division and its high costs appear to have strengthened investor pressure to reallocate resources towards segments that are deemed more profitable.
The market's renewed interest in Meta reflects a favorable reception to this possible reorientation. While metaverse has not yet found a convincing business model, the group's AI initiatives are seen as more promising for growth and valuation. If the investment cuts are confirmed, they could mark a new step in Meta's repositioning to meet market expectations.
