Core Viewpoint - Meta is shifting its focus from metaverse projects to AI-powered glasses and wearable technology, indicating a strategic pivot in resource allocation [1][2][5]. Group 1: Strategic Shift - Meta plans to reduce investment in its metaverse division, Reality Labs, by reallocating resources towards AI glasses and wearables due to positive momentum in that area [2][5]. - Reports suggest that Meta could cut as much as 30% from its metaverse group as part of its 2026 budget planning, potentially leading to layoffs as early as January [5]. Group 2: Financial Impact - Investors reacted positively to the news, with Meta's shares increasing by 4%, reflecting relief over the company's decision to scale back on its costly metaverse initiatives, which have incurred losses exceeding $60 billion [5]. - The company has committed up to $65 billion in capital expenditures for the year, while the broader tech industry is expected to invest around $400 billion in AI by 2025 [10]. Group 3: Market Position - Meta has encountered difficulties in promoting its immersive metaverse vision beyond the gaming community, but has seen early success with its smart glasses, prompting the resource shift [8]. - Competitors like Google, Apple, and Snap have struggled to convert their initial products into commercially viable offerings, highlighting Meta's potential advantage in the wearable tech segment [8].

Market Overview - Major U.S. indices closed mixed, with the Dow Jones Industrial Average down 0.07% to 47,850.94, the S&P 500 up 0.1% to 6,857.12, and the Nasdaq up 0.2% to 23,505.13 [1] SoFi Technologies Inc. - SoFi Technologies' stock rose by 1.82% to close at $29.60, with an intraday high of $29.70 and a low of $28.48, but fell nearly 6% in after-hours trading to $27.83 [1] - The company announced a $1.5 billion common stock offering, with underwriters having a 30-day option to purchase up to 15% more shares, aimed at strengthening its capital position and supporting growth initiatives [2] Oklo - Oklo's stock surged by 15.59% to close at $111.65, reaching an intraday high of $114.29, but declined over 6% in after-hours trading to $104.70 [3][4] - The stock's rise was influenced by comments from Nvidia's CEO regarding the importance of nuclear power for AI data centers [4] Meta Platforms Inc. - Meta Platforms' stock increased by 3.43% to close at $661.53, with an intraday high of $676.10 and a low of $660.05 [5] - The company is reportedly preparing to cut metaverse spending by up to 30% in 2026, with potential layoffs as early as January, as it shifts resources toward AI [6] Ulta Beauty - Ulta Beauty's stock fell by 1.94% to close at $533.95 but rose 5.9% in after-hours trading to $565.51 [7] - The company reported stronger-than-expected third-quarter results, with earnings of $5.14 per share and revenue of $2.86 billion, net sales grew 12.9%, and comparable sales were up 6.3% [8] BigBear.ai - BigBear.ai's stock climbed by 15.27% to close at $7.02, with an intraday high of $7.18, but fell 1% in extended trading to $6.95 [8] - The rise was attributed to the company's support for the Washington Commanders' charity initiative, with custom cleats being auctioned to benefit various nonprofits [9]

Shares of Meta Platforms surged Thursday following a report that the company is looking to significantly cut spending on its "metaverse" projects next year. https://t.co/XFmlss1pps ...

Core Viewpoint - Meta Platforms' stock experienced a significant increase, adding $69 billion to its market cap, now totaling $1.68 trillion, with a year-to-date rise of 13% [1] Group 1: Stock Performance - The stock rose by as much as 4% following news of budget cuts in the metaverse division [1][2] - The market's positive response indicates investor confidence in the company's shift towards AI over metaverse investments [5] Group 2: Strategic Shift - Meta plans to reduce its metaverse budget by 30%, reflecting a strategic pivot away from metaverse investments [2] - The company has increasingly focused on AI, moving away from its initial emphasis on metaverse technology since its rebranding in October 2021 [3] Group 3: Financial Impact - The Reality Labs Division has incurred losses of $70 billion since 2021, indicating a lack of return on investment in the metaverse [4] - The absence of any mention of the metaverse in the most recent earnings call further underscores the company's shift in focus [4]

Core Insights - Meta Platforms (META) shares increased by 4% following reports of significant budget cuts planned for its metaverse projects in the upcoming year [1][2] - CEO Mark Zuckerberg has instructed executives to find at least 10% in budget cuts across the company, with potential cuts reaching up to 30% in the metaverse departments [1][5] Financial Performance - The stock has gained 14% since the beginning of the year, although it has underperformed compared to the S&P 500 index [2] Strategic Shifts - Meta and other major tech companies have been implementing cost-cutting measures as they redirect funds towards artificial intelligence infrastructure [3] - There is growing pressure from investors and analysts for Meta to reduce its spending on the metaverse due to insufficient progress in sales and consumer interest [4][6] Operational Changes - Executives have been asked to reduce metaverse spending due to a lack of competition in the tech sector, with the virtual reality segment expected to be the most affected [5] - Potential layoffs in the metaverse departments could occur as early as January, although these decisions are not yet finalized [5] Regulatory Considerations - The European Commission is evaluating whether Meta's new policy could violate competition laws by limiting AI companies' access to users on WhatsApp, potentially favoring Meta's own AI chatbot [8]

Core Insights - Meta Platforms Inc. is expected to significantly reduce resources allocated to the metaverse, which was previously framed as the company's future direction [1][6] - Proposed budget cuts for the metaverse group could reach up to 30% next year, potentially leading to layoffs as early as January [2][4] - The metaverse group's budget cuts are part of the company's annual planning for 2026, with a standard request for 10% cuts across all divisions [3] Financial Performance - The metaverse group, part of Reality Labs, has incurred losses exceeding $70 billion since 2021 [7] - Investors have expressed concerns regarding the metaverse initiative, viewing it as a resource drain [5][8] Strategic Shift - Meta's focus is shifting away from the metaverse towards developing AI technologies and hardware products, such as AI chatbots and smart display glasses [7][8] - Analysts have suggested that Meta should consider discontinuing its metaverse projects, like Horizon Worlds, to concentrate on more profitable ventures [8]

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]

Metaverse Strategy - Meta is considering cuts to its metaverse efforts, potentially as much as 30% [1] - The market and consumers have not necessarily believed in Meta's metaverse efforts [2] - VR headsets purchased for metaverse experiences often end up unused after a few weeks [2] Market Reaction - Meta shares are spiking this morning following the report of potential cuts to metaverse efforts [1]