Meta Plans to Reduce Metaverse Budget by Up to 30%, According to Bloomberg News
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy META?
Source: Reuters
Budget Cuts for Metaverse Initiative: Meta is expected to implement budget cuts of up to 30% for its metaverse initiative, which may include layoffs as early as January, as part of its annual budget planning for 2026.
Investor Reaction: The announcement of budget cuts led to a 4% rise in Meta's shares, alleviating some investor concerns over the significant financial losses the company has faced in its metaverse investments since 2020.
Challenges in the Metaverse Market: Meta has struggled to sell its vision of an immersive metaverse and expand its market for devices, although it has found some success with smart glasses compared to competitors like Google and Apple.
Focus on AI Development: Amidst challenges, Meta is intensifying its efforts in artificial intelligence, reorganizing its AI initiatives under Superintelligence Labs and committing up to $72 billion in capital spending this year to stay competitive in the tech landscape.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 661.460
Low
655.15
Averages
824.71
High
1117
Current: 661.460
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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