Core Insights - Meta Platforms is making significant budget cuts to its metaverse division, acknowledging that its previous focus on the metaverse was misguided and costly [1][5][11] - The company plans to reduce its metaverse budget by up to 30%, which is expected to save billions annually [6][11] - Meta's Reality Labs division has incurred substantial losses, with a reported loss of $13.2 billion in 2023 and $17.7 billion for the full year [3][11] Financial Performance - Meta's Reality Labs generated only $1.3 billion in revenue while incurring losses of $13.2 billion in 2023 [3] - The company's stock saw a positive reaction, increasing by several points following the announcement of budget cuts [6] - Since the layoffs in November 2022, which affected 11,000 employees, Meta's stock has increased over 500%, indicating a successful shift in strategy towards profitability [10] Strategic Shift - The cuts will affect products like Horizon Worlds and the Quest virtual reality unit, with layoffs expected as early as January [7] - This strategic pivot reflects a realization that technology must be useful to succeed, moving away from Zuckerberg's previous vision of the metaverse [7][12] - The company aims to redirect resources towards more practical applications, particularly in AI and other startup projects [12]

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]

Investors are cheering Meta's latest cost-cutting move. The social media giant is reportedly gearing up to slash spending in its metaverse unit. Despite betting big on the concept a few years ago, the metaverse has been a money loser for Meta. The move: Meta Platforms stock spiked on Thursday, with the social media company seeing $69 billion added to its market cap, bringing its total value to $1.68 trillion. The stock rose as much as 4%, and is up 13% year-to-date. The chart: Why: The stock's most ...

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 is experiencing a significant stock increase of 5.8% following its announcement of plans to cut 30% of its metaverse division, which has been a major financial drain for the company [3][7] - The overall market is showing mixed results, with the Nasdaq and S&P 500 opening higher, while the Dow and Russell 2000 are performing differently, influenced by jobless claims and layoffs reports [2][4] Company Updates - Guidewire Software's stock rose by 10.8% due to positive earnings, while Snowflake's stock fell by 9.1% amid ongoing earnings season [6] - Dollar General's stock increased by 4.6% after reporting strong earnings and raising its outlook, indicating positive market sentiment towards the company [7] - Brown-Forman's stock dropped by 5% following a disappointing earnings report that showed declining profits and revenues, reflecting ongoing challenges post-pandemic [8] Market Trends - Natural Gas prices decreased by 1.04% to $4.943, while Brent crude oil increased by 0.32% to $62.87, indicating varied performance in commodity markets [4] - The 10-year Treasury yield rose to 4.083%, with anticipation building for the Federal Reserve's upcoming December meeting [5]

As I said, a few things to get through. Obviously, we've had some lines that we're tracking around Meta with respect to the metaverse. We've also had, of course, some of the lines and reporting around what's going on at Warner Brothers Discovery with these bids coming from Netflix as well.Let's start there with Meta Stock that's rallying today with Kevin Green who joins me for a look across some of the stories. We're seeing a few developments here. A report just out in the last hour or so that the company c ...

Core Insights - Mark Zuckerberg is proposing significant cuts to Meta's metaverse initiatives, indicating a strategic pivot towards artificial intelligence (AI) and AI-related hardware [1] - This shift represents a major change in the company's focus and resource allocation, moving away from the previously emphasized metaverse development [1] Company Strategy - The decision to reduce investment in the metaverse suggests that Meta is reassessing its long-term strategy in light of current market conditions and technological advancements [1] - The reallocation of capital towards AI reflects a broader industry trend where companies are prioritizing AI capabilities to enhance their product offerings and operational efficiencies [1] Industry Implications - Meta's shift may influence other companies in the tech sector to reconsider their own investments in the metaverse, potentially leading to a broader reevaluation of the viability of virtual reality projects [1] - The focus on AI and related technologies could accelerate innovation and competition within the AI space, impacting various sectors beyond just social media and technology [1]

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]

Core Viewpoint - Meta's significant investments in the metaverse are being questioned by analysts regarding their potential to yield substantial returns [1] Group 1: Investment Concerns - Analysts express skepticism about the rationale behind Meta's heavy spending in the metaverse [1] - There is uncertainty surrounding whether these investments will lead to compelling financial returns [1]