Mark Zuckerberg Threw $77 Billion 'Into The Toilet' On Metaverse, Says Economist Dean Baker: Asks If He Is Set To Waste Billions More On AI - Meta Platforms (NASDAQ:META)

Core Viewpoint - Economist Dean Baker criticizes Meta Platforms Inc. CEO Mark Zuckerberg's $77 billion investment in the Metaverse, arguing it represents not only a corporate loss but also a broader economic failure with significant social costs [1][2]. Investment Analysis - The $77 billion investment in the Metaverse is viewed as a substantial misallocation of resources, diverting talent and physical assets from more productive uses [3][4]. - Baker emphasizes that the resources tied up in the Metaverse project could have been utilized for more beneficial purposes, such as affordable housing in the Bay Area [5]. Economic Implications - The failed Metaverse investment is particularly relevant as major tech firms are now investing heavily in artificial intelligence, which is reshaping the economy and straining power grids [6]. - Baker questions whether Zuckerberg has become a more disciplined steward of capital since the Metaverse era, with a potential answer expected by 2026 [6]. Company Adjustments - Meta announced a reduction of up to 30% in its 2026 Metaverse budget, which constitutes 50% to 60% of its Reality Labs division spending, following cumulative losses of $70 billion since 2021 [7]. - The company is also facing criticism for its increasing AI investments, projected to reach $100 billion by 2026, which will require significant external financing [7]. Stock Performance - Meta shares experienced a decline of 0.69% on Monday, closing at $658.69, and a further drop of 0.24% overnight, indicating mixed performance in the market [8].