Meta Cuts 1,000 Jobs to Shift Focus from VR to AI and Smart Glasses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Newsfilter
- Industry Chill: Meta's layoff of approximately 1,000 employees, primarily from VR-related projects, signifies a strategic pivot from virtual reality to artificial intelligence and smart glasses, casting uncertainty over the VR industry's future.
- Market Response: Analysts from IDC highlight that the VR headset market is perceived as niche, with projected shipments expected to decline by 42.8% by 2025, while shipments of AI smart glasses are anticipated to grow by 211.2%, indicating waning consumer interest in VR.
- Strategic Shift: Meta's Reality Labs has incurred over $70 billion in cumulative losses since its 2014 acquisition of Oculus, and CEO Mark Zuckerberg's shift raises concerns among developers about future prospects, even as the company asserts continued investment in VR.
- Enterprise Market Opportunity: Despite Meta's reduced focus on VR, the enterprise VR market shows growth potential, with IDC noting that companies are recognizing the strong ROI associated with deploying VR headsets, which could become a future growth driver.
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: 647.630
Low
655.15
Averages
824.71
High
1117
Current: 647.630
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.
