Meta’s Metaverse Cutbacks Spark Investor Rally as Stock Surges
Meta Platforms (META) shares jumped 4% Thursday after reports surfaced that the company plans significant spending reductions on its metaverse projects. CEO Mark Zuckerberg has directed executives to identify budget cuts of at least 10% company-wide for 2025, with metaverse divisions facing potential reductions of up to 30%.
The MOVE signals a strategic pivot for the tech giant, which rebranded from Facebook in 2021 to emphasize its metaverse ambitions. Investors have long questioned the profitability of Meta's massive metaverse investments, particularly as the company redirects resources toward artificial intelligence infrastructure.
Meta's stock performance had lagged the S&P 500 this year with a 14% gain prior to the announcement. The market's positive reaction underscores growing investor preference for fiscal discipline over speculative tech bets.
