Meta Shifts Focus from Metaverse to AI and Wearables, Stock Rises
Meta Platforms, Inc. (META) shares climbed 3.47% to $661.83 as CEO Mark Zuckerberg announced sweeping cuts to metaverse projects. The company plans to reallocate 30% of resources from initiatives like Horizon Worlds and Quest VR toward artificial intelligence and wearable technology.
The strategic pivot follows $70 billion in metaverse-related losses and mounting competition in VIRTUAL reality. Meta will begin implementing the restructuring in January, potentially including workforce reductions. This marks a decisive turn toward near-term profitability after years of heavy metaverse investment.
Analysts view the shift as a pragmatic response to market realities. AI and wearables represent more mature sectors with clearer monetization paths compared to the experimental metaverse division. The MOVE aligns with broader tech industry trends favoring practical AI applications over speculative virtual world-building.
