Meta's Stock Rises Following News of Potential 30% Reduction in Metaverse Budget

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 4 hour ago

Meta's Budget Cuts: Meta is considering reducing its metaverse spending by up to 30%, potentially leading to layoffs in its Reality Labs division, with plans to redirect funds towards virtual reality glasses and artificial intelligence development.
Market Reaction: Following the news of budget cuts, Meta's shares initially rose over 5% before settling at a 3.4% gain, indicating positive investor sentiment regarding the company's strategic shift.
Competition in the Metaverse: Interest in the metaverse has waned as major tech companies like Apple and Google have slowed their virtual reality efforts, prompting Meta to reassess its aggressive spending in this area.
Focus on AI Glasses: Despite scaling back on the metaverse, CEO Mark Zuckerberg announced the launch of a new creative studio within Reality Labs aimed at developing AI glasses and enhancing user interactions with technology.

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Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.