Meta Exits Metaverse Strategy, Focuses on Core Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy META?
Source: NASDAQ.COM
- Strategic Shift: Meta's decision to sunset its Horizon Worlds VR platform on June 15 signals a significant pivot away from its money-losing metaverse ambitions, which is expected to enhance overall profitability and bolster shareholder confidence.
- Financial Losses: The Reality Lab division has accumulated nearly $80 billion in losses since 2020, with over $6 billion lost last quarter alone; shutting down Horizon Worlds is anticipated to help mitigate these losses.
- AI Development Direction: Despite substantial investments in AI infrastructure and hiring top talent, Meta's new Avocado AI model has been delayed due to underperformance, leading to suggestions that the company should consider outsourcing AI development to Alphabet to reduce capital expenditures and improve free cash flow.
- Market Outlook: Given Meta's strong track record in monetizing its user base, focusing on its core business rather than building proprietary AI models is likely to enhance long-term stock performance and strengthen its competitive position in the market.
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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: 579.230
Low
655.15
Averages
824.71
High
1117
Current: 579.230
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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- Investor Decision Factors: When selecting investment targets, investors must consider factors such as financial health, market share, and future growth potential, as these will directly impact investment returns.
- Future Outlook: Although both companies exhibit solid market performance, investors should closely monitor their financial reports and market dynamics to make informed investment decisions.
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- Capital Expenditure Plans: In 2026, Alphabet plans to spend $175 billion to $185 billion, while Amazon and Meta are set to invest $200 billion and $115 billion to $135 billion respectively; Ackman believes these investments will drive future earnings growth despite ongoing concerns about returns.
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