Meta shares are higher this morning after a report said the company is planning to meaningfully cut the resources devoted to its metaverse efforts slashing budgets there by as much as 30% next year. Let's bring in Gil Lauria DA Davidson's head of technology research uh for his take on this. So Gil, how do you think about it in terms of magnitude of spending.The markets, you know, added about 100 billion in market cap to uh to Meta this morning in response. Yeah, if they shut down the Reality Labs business, ...

Meta weighs deep reductions to metaverse unit while sector’s crypto tokens collapse: report https://t.co/Lte9CJuddi ...

Meta Platforms - Meta is reportedly planning to cut 30% of its budget allocated to the metaverse, aiming to redirect those savings towards artificial intelligence initiatives [2][4][5] - Following the news, Meta's stock saw an increase of approximately 3%, although it retreated from pre-market highs of around $687 [3][6] - Mark Zuckerberg has shifted focus away from the metaverse in recent communications, emphasizing artificial intelligence instead, indicating a broader strategy to cut costs across all business segments by about 10% [5][7] Job Market Data - Initial jobless claims were reported at 191,000, significantly lower than the expected 219,000, with notable drops in California (36.6%) and Texas (42.8%) [9][10][11] - The Challenger job cuts report indicated 1.1 million layoffs this year, the highest since 2020, suggesting potential disruptions similar to those seen in the early 2000s technology sector [13] Factory Orders and Economic Indicators - September factory orders increased by 0.2% month-over-month, a revision down from a previous estimate of 1.4%, indicating some stabilization in the manufacturing sector [14][15] - The manufacturing sector, which constitutes about 30% of the U.S. economy, has been in a recession for the past 2-3 years, yet it has not significantly impacted equity markets [15][16] Commodity Market Insights - Oil and gasoline prices are trending lower, influenced by recent announcements regarding fuel economy standards, which may have long-term implications for fuel efficiency [18][19] - Gasoline prices are currently around $181 for unfinished products, indicating a downward trend that could signal economic weakening in certain areas [21][22]

Meta shares are spiking here this morning and that's after a report on Bloomberg um that the company is considering cuts to its metaverse efforts. Luckily Dan Howie is on set with me here so we can talk a little bit about this. Now Bloomberg is saying that these cuts could be as much as 30%.And the irony here of course the company is called Meta. Mark Zuckerberg still reportedly really believes in the concept of the metaverse that one day we will not be sitting next to each other but we'll be our avatars wi ...

Meta's Mark Zuckerberg is expected to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason for changing its name from Facebook.Read our exclusive story: https://t.co/b7vZXGNv9y📷️: Hollie Adams/Bloomberg ...

Core Insights - Meta's Mark Zuckerberg is expected to significantly reduce resources allocated for the development of the metaverse [1] Company Actions - The decision to cut resources is based on discussions among company executives [1]

Meta's Zuckerberg is planning cuts as high as 30% for his metaverse efforts, after the idea of living in virtual worlds has failed to take off https://t.co/qV0g8l2QHs ...

Core Insights - Meta is launching a new creative studio within its Reality Labs division, led by former Apple design executive Alan Dye, to innovate future products and services [1][2] Group 1: Leadership and Team Composition - Alan Dye, who has extensive experience at Apple, will head the new studio, which will also include other notable design leads from Apple and Meta's existing design teams [3] - The team aims to leverage their combined expertise in creating products that integrate hardware and software seamlessly [2][3] Group 2: Vision and Objectives - Mark Zuckerberg emphasized that the studio's focus will be on developing AI glasses and other devices that enhance human-technology interaction, aiming for natural and intuitive user experiences [4] - The studio's mission is to ensure that every interaction with their products is thoughtful and centered around user needs [4] Group 3: Alan Dye's Background - Alan Dye joined Apple in 2006 and became the Design Studio Lead in 2015, significantly influencing the design evolution of major Apple platforms [5][6] - His work included the introduction of Liquid Glass, a new material that transformed the aesthetics and usability of Apple's devices [5][6]

Microsoft - Microsoft stock is rated as a "Strong Buy" by 39 out of 48 analysts, with an average target price of $630.59, indicating a potential upside of 32.6% [1] - The company has strengthened its partnership with OpenAI, gaining exclusive Azure privileges and extended access to models and IP [2] - Microsoft ended the quarter with $102 billion in cash and short-term investments, and has a record backlog of $392 billion, positioning it well for growth [2] - The company invested $34.9 billion in AI and cloud expansion, with half allocated to shorter-lived chips and hardware, and the other half for long-term infrastructure [3] - In the fiscal 2026 first quarter, Microsoft reported revenue of $77.7 billion, a 17% increase year-over-year, and earnings of $4.13 per share, up 21% [4] Amazon - Amazon stock is also rated as a "Strong Buy," with 49 out of 57 analysts recommending it, and an average target price of $295.85, suggesting a potential upside of 36% [8] - Amazon Web Services (AWS) reported a 20% year-over-year revenue increase in Q3, with an annualized revenue run rate of $132 billion and a backlog of $200 billion [7] - The company is investing over $90 billion this year to prepare for an AI-driven future, while maintaining healthy profitability with EPS rising 36% to $1.95 [7] Meta Platforms - Meta Platforms stock is rated as a "Strong Buy" by 43 out of 56 analysts, with an average price target of $838.62, indicating a potential upside of 42.3% [11] - The Family of Apps segment generated $50.8 billion in revenue, a 26% increase year-over-year, driven by strong advertising demand [9] - Reality Labs revenue increased by 74% to $470 million, supported by interest in AI-enabled products [10] Alphabet - Alphabet stock is rated as a "Strong Buy" by 43 out of 55 analysts, with an average target price of $317.92, suggesting a potential upside of 6% [14] - The company reported $102.3 billion in revenue for Q3, marking its first-ever $100 billion quarter, with a 16% year-over-year growth [12] - Google Cloud revenue grew by 34% to $15.2 billion, with a backlog of $155 billion, up 82% from last year [13]

Group 1 - The "Magnificent Seven" includes Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta Platforms, and Tesla, representing 35% of the S&P 500 value [1] - Tesla's core business growth is slowing, contrasting with the strong revenue growth of other companies in the group [4][5] - Tesla's electric vehicle deliveries declined in the first half of 2025, with automotive revenue growing only 6% year over year and operating margin dropping to 5.8% [6] Group 2 - Other companies in the "Magnificent Seven" have strong revenue streams, such as Apple's iPhone and services, Amazon Web Services, and Nvidia's compute and networking segment [5] - Tesla's Robotaxi business is beginning to roll out, but its autonomous Cybercab is not yet in production, highlighting a key difference from its peers [7] - Tesla's valuation is considered astronomically high compared to other companies in the group [7]