"Back in 2021 and 2022, Meta bet big on virtual reality and the metaverse, rebranding from Facebook and committing tens of billions to Reality Labs. The division racked up losses exceeding $10 billion annually, with products like Horizon Worlds failing to gain traction. Investors worried about the lack of monetization strategies, leading to stock volatility and questions about resource allocation away from proven ad revenue streams. The metaverse hype faded, leaving Meta to refocus on efficiency amid economic pressures."
"Meta's third-quarter 2025 earnings showed robust growth in its core operations, with revenue hitting $51.24 billion, up 26% year-over-year and beating estimates of $49.41 billion. Adjusted earnings came in at $7.25 per share, surpassing the $6.67 forecast, though a one-off tax charge pulled the reported figure down to $1.05 per share. Looking ahead, the company signaled up to $600 billion in U.S. infrastructure spending over the next three years."
Meta shifted massive spending from metaverse projects to an aggressive artificial intelligence push that mirrors past costly bets. Reality Labs lost over $10 billion annually and Horizon Worlds failed to attract users, prompting investor concerns about monetization, stock volatility, and resource allocation away from ad revenue. Analysts warn AI spending on advanced models risks a similar prolonged drag on profitability given the lack of a flagship product. Third-quarter 2025 revenue rose to $51.24 billion with adjusted EPS of $7.25 beating estimates, though a one-off tax charge lowered reported EPS to $1.05. The company signaled up to $600 billion in U.S. infrastructure spending and holds roughly $44.4 billion in cash against $28.8 billion in debt.
Read at 24/7 Wall St.
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