Meta Shares Rise on Metaverse Budget Cut Speculation
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BTCCSquare news:
Meta Platforms Inc. saw its shares climb approximately 4% following reports of potential deep cuts to its metaverse division's budget. Investors reacted positively to the prospect of reduced spending on Reality Labs, the unit behind Quest headsets and Horizon VIRTUAL spaces, which has accumulated losses nearing $70 billion since 2020.
The market's swift response added roughly $69 billion to Meta's valuation, signaling a preference for near-term profitability over long-term speculative bets. Staff reductions may follow in early 2024 as the company reevaluates its 2026 financial planning.
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