Meta Stock 2026: AI and Wearables Fuel Future Optimism!
- Why Is Meta Slashing Reality Labs Jobs?
- From VR Headsets to Smart Glasses: Meta’s Pivot Explained
- Analysts vs. Insiders: Who’s Betting on Meta Stock?
- Q4 Earnings Preview: AI CapEx and Nuclear Power Deals
- FAQ: Your Burning Meta Stock Questions, Answered
Meta is pivoting hard from its Metaverse dreams to AI and wearables, cutting 1,000+ Reality Labs jobs and shutting down VR studios. Despite Q3 2025’s $4.4B loss in VR, analysts remain bullish with price targets up to $1,117. The Ray-Ban Smart Glasses’ success hints at Meta’s new direction—subtle, AI-powered devices over clunky headsets. With Q4 earnings due soon, all eyes are on CapEx shifts toward AI data centers and nuclear energy deals. Is this the year Meta’s efficiency push pays off? Let’s dive in.
Why Is Meta Slashing Reality Labs Jobs?
Meta just dropped a bombshell: 10% of Reality Labs’ workforce (1,000–1,500 employees) is getting axed. Three VR gaming studios—Armature Studio, Twisted Pixel, and Sanzaru Games—are closing, and the fitness app Supernatural is entering maintenance mode. The reason? A brutal $70B+ loss since 2020, including a $4.4B hemorrhage in Q3 2025 alone. Tracy Clayton, Meta’s spokesperson, framed it as “reallocating capital to growth areas”—namely AI and wearables. It’s a stark admission: Zuckerberg’s Metaverse bet bled cash, and shareholders want ROI. (Source: Meta Q3 2025 Earnings Report)
From VR Headsets to Smart Glasses: Meta’s Pivot Explained
Remember those Ray-Ban Meta Smart Glasses everyone mocked in 2023? Turns out they’re Meta’s dark horse. Unlike the Quest VR headsets (which collect dust in closets), these shades quietly became a hit by embedding AI assistants into daily life. Morgan Stanley calls it “the wearable pivot”—ditching sci-fi goggles for practical tech. The numbers back it up: Quest sales fell 22% YoY in 2025, while wearables revenue jumped 34%. Even Zuckerberg’s “Year of Efficiency” MANTRA got a 2026 upgrade: less Metaverse fluff, more AI infrastructure. (Source: TradingView)
Analysts vs. Insiders: Who’s Betting on Meta Stock?
Wall Street’s still smitten. Rosenblatt Securities slapped a $1,117 price target (75% upside!), and Morgan Stanley holds its “Overweight” rating ($750 target). Consensus? A “Strong Buy” averaging $835.59. But insiders are cashing out—$24.8M in stock sales last quarter, per SEC filings. WP Advisors LLC trimmed its position by 2.2%. Classic “buy the rumor, sell the news” vibes after Meta’s 12-month rally. The big question: Are institutions locking in gains or doubting Zuckerberg’s AI promises? (Source: Bloomberg)
Q4 Earnings Preview: AI CapEx and Nuclear Power Deals
Meta’s Q4 report (expected EPS: $8.19, revenue: $58.34B) will hinge on CapEx plans. Watch for shifts from VR to AI data centers—especially the Oklo nuclear partnership. Why? AI clusters guzzle power, and Meta’s betting on mini-reactors for cheap, clean energy. Chart-wise, $630 is the line in the sand: Stay above it, and the uptrend lives; break below, and skeptics win. One thing’s clear: Meta’s done burning cash on virtual worlds. Now it’s AI or bust. (Source: CoinMarketCap)
FAQ: Your Burning Meta Stock Questions, Answered
Is Meta stock a buy after the Reality Labs cuts?
Analysts say yes—Rosenblatt’s $1,117 target implies major upside. But watch Q4 CapEx guidance closely.
Why is Meta partnering with nuclear startups like Oklo?
AI data centers need massive, stable power. Nuclear offers both—without carbon guilt.
Are insiders selling Meta stock?
Yes. $24.8M in recent sales suggests profit-taking, but long-term holders (like Vanguard) remain.
