Meta Shuts Down Horizon Worlds Virtual Social Network
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy META?
Source: CNBC
- Platform Shutdown Announcement: Meta has announced the closure of Horizon Worlds on June 15, with the app being removed from the Quest store by the end of March, marking a significant shift in its metaverse strategy that could lead to user attrition and brand impact.
- User Growth Struggles: Since its launch, Horizon Worlds has never exceeded a few hundred thousand monthly active users, reflecting public skepticism towards virtual reality, which has resulted in poor returns on Meta's metaverse investments and exacerbated financial pressures.
- Layoffs and Restructuring: Alongside the Horizon Worlds shutdown, Meta has cut over 1,000 employees from Reality Labs, indicating a restructuring of its virtual reality projects and a renewed focus on artificial intelligence, which may affect future innovation capabilities.
- Escalating Financial Losses: Reality Labs has reported billions in losses each quarter since its launch, with an operating loss of $6.02 billion in Q4 2023, highlighting that Meta's investments in virtual reality have not yielded the expected commercial returns.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 525.720
Low
655.15
Averages
824.71
High
1117
Current: 525.720
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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