Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) shares rose 3.4% on Thursday after-hours, adding about $57 billion to its market value, after reports suggested Mark Zuckerberg is preparing to dial back spending on the metaverse and shift more resources toward artificial intelligence and smart glasses.
According to an exclusive from Bloomberg, the Facebook owenr is planning to cut the budget for Reality Labs, the division behind its virtual-reality headsets and metaverse projects.
Reality Labs has struggled to justify its cost. The unit posted a $4.4 billion loss in the most recent quarter while generating just $470 million in revenue, and the broader market for VR hardware remains modest compared with the smartphone industry.
Growth, though, is strongest in smart eyewear, an area Meta is now leaning into.
Shipments of smart glasses, including Meta’s Ray-Ban line, could rise by as much as 247.5%.
In September, the company unveiled Ray-Ban Display, $799 glasses with a built-in screen for messages and basic apps. Rivals such as Google, Samsung and Apple are developing their own versions.
The reported cuts come as Meta accelerates investment in AI, from new data-centre deals to aggressive hiring, including Apple design executive Alan Dye and engineers from companies such as OpenAI.