Meta Shifts Metaverse Focus to AI Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy META?
Source: NASDAQ.COM
- Strategic Shift: Meta Platforms is scaling back key elements of its metaverse strategy, laying off about 10% of employees in its metaverse division, indicating a significant pivot towards prioritizing artificial intelligence investments.
- Application Support Changes: The company announced that its flagship virtual world app, Horizon Worlds, will cease supporting new VR applications; although access through VR headsets was initially set to end on June 15, it later clarified that some existing VR experiences will still be supported, reflecting ongoing user experience considerations.
- Massive Investment Plans: Meta plans to invest at least $115 billion this year, primarily in AI infrastructure including new data centers, underscoring its strategic transformation and commitment to future technological advancements.
- Market Competition Pressure: Despite approximately $80 billion invested in the metaverse, it remains a niche market compared to digital platforms like Roblox and Fortnite, compelling the company to reassess its strategic direction in light of significant competitive pressures.
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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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- Investment Outlook: Analysts project Arm's revenue to reach $7.4 billion and earnings to hit $2.3 billion by 2028, indicating a dual growth potential from its core IP and new AGI CPU business, despite challenges related to execution risks and rising costs.
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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.
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- Capital Expenditure Plans: In 2026, Alphabet plans to invest $175 billion to $185 billion, while Amazon and Meta are set to spend $200 billion and $115 billion to $135 billion on AI-related investments, demonstrating their commitment to technological innovation.
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See More
