Core Insights - Meta is delaying the release of its new mixed reality glasses, code-named "Phoenix," from the second half of 2026 to the first half of 2027 [1] - The delay is intended to allow more time for refinement and to ensure a high-quality user experience [2][5] - The "Phoenix" glasses will have a goggle-like design and will be powered by a separate puck to enhance comfort and prevent overheating [3][4] Product Development - The "Phoenix" glasses are designed to be similar to Apple's Vision Pro, with a focus on lightweight and comfortable use [4] - Meta is also planning to release a new "limited edition" wearable device, code-named "Malibu 2," in 2026 [5] - The company is starting work on its next-generation Quest device, which aims to significantly upgrade capabilities and improve unit economics [6] Organizational Changes - Meta has reorganized its metaverse unit, appointing Gabriel Aul and Ryan Cairns to co-lead efforts in immersive gaming and virtual reality hardware [6] - The company is considering budget cuts of up to 30% within its Reality Labs division, which may affect employees working on the Horizon Worlds platform [6] AI Initiatives - Meta has expanded its AI hardware efforts by acquiring Limitless, a startup that produces AI-powered pendant devices [7]

LPETTET/iStock Unreleased via Getty Images Listen below or on the go on Apple Podcasts and Spotify Netflix (NFLX) is buying Warner Brothers (0:20). Dollar General (DG), Salesforce (CRM) earnings (6:40). December Fed meeting (12:30). Meta chooses AI over metaverse (19:00). Transcript Rena Sherbill: Brian Stewart, our Director of news at Seeking Alpha. Welcome to December, 2025. Brian Stewart: Great to be here. Rena Sherbill: Great to have you talk to us. What's top of mind for you this week? Brian Ste ...

Core Viewpoint - Wall Street analysts have rerated Meta Platforms Inc following the company's consideration to cut up to 30% of its 2026 Metaverse budget, primarily affecting the Quest virtual reality unit and Horizon Worlds, which represent the majority of metaverse-related investments [1] Group 1: Budget Cuts and Financial Projections - JP Morgan analyst Doug Anmuth projected that Reality Labs spending will reach $21 billion in 2025 and $26 billion in 2026, with a potential 30% reduction in metaverse spending saving up to $5 billion [2] - If the savings are derived from headcount reductions, Meta could potentially cut approximately 11,000–13,000 employees, which would account for 15–17% of its workforce as of Q3 [3] - Anmuth maintained his expense estimates for 2026 at $153 billion (up 30%) and capex at $115 billion (up 61%) [5] Group 2: Expense Management and Growth Drivers - The analyst emphasized the importance of maintaining GAAP EPS growth, operating income expansion, and positive free cash flow during heavy capital expenditures [4] - A 10% cost reduction across the rest of the business could yield an additional $10 billion in savings, although these cuts are expected to be reallocated to data center and AI investments [8] - Despite anticipated material cost growth in 2026, Meta appears to have flexibility in cost allocations to protect EPS growth amid macroeconomic pressures [8] Group 3: Market Sentiment and Future Outlook - The shift in Reality Labs spending is seen as constructive for market sentiment, addressing investor concerns regarding long-term Metaverse investments [9] - Analysts foresee multiple growth drivers for 2026, including increased usage, AI enhancements, and new advertising opportunities, which could elevate revenue beyond current estimates [9] - Upcoming catalysts include the launch of Meta Business AI and new user-facing AI products expected in 2026, with initial guidance for 2026 expenses projected to grow 28–38% year over year [11] Group 4: Analyst Ratings and Price Forecasts - Doug Anmuth from JPMorgan maintained an Overweight rating on Meta with a price target of $800 [10] - Justin Post from Bank of America Securities reiterated a Buy rating on Meta with a price target of $810 [10]

In 2021, Mark Zuckerberg recast Facebook as Meta and declared the metaverse—a digital realm where people would work, socialize, and spend much of their lives—the company’s next great frontier. He framed it as the “successor to the mobile internet” and said Meta would be “metaverse-first.”The hype wasn’t all him. Grayscale, the investment firm specializing in crypto, called the metaverse a “trillion-dollar revenue opportunity.” Barbados even opened up an embassy in Decentraland, one of the worlds in the met ...

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The metaverse was once hailed as the next great frontier in digital innovation, with tech giants pouring billions into immersive reality, advanced wearables, and 3D virtual platforms. However, the slowdown in investor enthusiasm and overall adoption has also made the largest spender in the industry, Meta Platforms (META), confront the issue of how far and how quickly it should go with this big, ambitious vision. No company has bet more heavily on the metaverse than Meta, whose Reality Labs division has ra ...

Core Insights - Meta Platforms (META) has underperformed the broader market this year, which is unusual for a "Magnificent 7" stock, prompting Cathie Wood to invest over $21 million in 33,837 shares, viewing the current situation as a risk-reward opportunity due to the company's long-term AI ambitions [1][3] Financial Performance - Meta reported a $16 billion tax bill in its latest earnings report, which contributed to selling pressure on the stock, despite a strong top line performance [3] - The company's stock returns of 5.45% over the past year lag behind the S&P 500 Index's 12.88% performance, with META holding the fifth-largest weighting in the index [4] Valuation Metrics - The current forward price-to-earnings (P/E) ratio for META is 27.82x, which is 22% above its five-year average of 22.81x, indicating that while the stock is reasonably valued, it is not cheap [5] - The forward price-to-sales (P/S) ratio is trading at a similar premium to its historical average, but it remains the second-lowest among its "Magnificent 7" peers [5] Growth Potential - META is projected to have a 20.3% earnings growth next year, excluding Nvidia, which is significantly higher than its peers, and its gross margins of 82% surpass Nvidia's 70% [6] - The current headwinds are viewed as an opportunity for investors, as the company is expected to outperform its peers in the coming year [6]

Shares of Meta Platforms Inc. (META) rose on Thursday after Bloomberg reported the technology company was planning to cut spending across its division by 10%, with as much as 30% of the cuts affecting... ...

分组1 - The Federal Reserve is expected to cut interest rates, with a majority of investors anticipating a quarter-point reduction in the upcoming policy meeting [22][23][24] - Initial jobless claims in the US fell to 191,000 for the week ending November 29, down from 218,000 the previous week, marking the lowest level since September 2022 [21][22] - Morgan Stanley's chief US equity strategist believes the market is not pricing in enough Fed rate cuts for the next year, suggesting that more aggressive cuts are necessary [23][24] 分组2 - Netflix is reportedly in the lead to acquire Warner Brothers Discovery, indicating a significant strategic shift for the streaming giant [3] - Meta's shares have risen as the company plans to implement significant cuts in its metaverse units, continuing its transition towards artificial intelligence [3][49] - The market is currently experiencing conflicting signals, with strong earnings figures being overshadowed by concerns over economic data and inflation [11][12][22] 分组3 - The European Central Bank (ECB) is expected to maintain its current interest rates, with no cuts anticipated in the near future despite inflation concerns [29][34] - Structural reforms in Europe are deemed necessary for economic growth, with calls for reducing red tape and improving the business environment [32][34] - The ECB's quantitative tightening measures are being closely monitored, with potential risks associated with liquidity distribution across the Eurozone [36][37] 分组4 - Bitcoin's recent price fluctuations are viewed as part of a maturing market cycle, with expectations for a more constructive macro backdrop for cryptocurrencies [52][66] - Regulatory clarity in the US is driving increased demand for digital asset infrastructure, with banks preparing to integrate blockchain technologies [69][70] - The debate around stablecoins and central bank digital currencies (CBDCs) is ongoing, with differing views on their impact on traditional monetary systems [71][74]

Meta is scaling back its metaverse spending and redirecting resources toward AI-powered glasses and wearable devices, marking one of the company’s most significant strategic pivots in years. Key Takeaways: Meta is cutting metaverse spending as it shifts focus to AI-powered wearables. VR platforms like Horizon Worlds have stalled, while smart glasses are gaining traction. The pivot aligns with a broader industry move toward lightweight, AI-integrated devices. The shift comes as investor skepticism ...