Why Is Meta Stock Trading Higher Today?

**Meta Platforms Inc.** (NASDAQ: META) stock gained after a report indicated that the Facebook parent is preparing to reduce resources for its metaverse efforts significantly.

CEO Mark Zuckerberg had previously touted the metaverse project as central to the company's future and the reason behind the renaming of **Facebook Inc**.

Executives are reviewing budget cuts of up to 30% for the metaverse group in 2026, which oversees Meta Horizon Worlds and the Quest virtual reality unit, Bloomberg [reported](https://www.bloomberg.com/news/articles/2025-12-04/meta-s-zuckerberg-plans-deep-cuts-for-metaverse-efforts?sref=TBDibEcD).

## Meta’s AI Push

Meta has shifted public focus toward AI and related hardware, such as large AI models and Meta's Ray-Ban smart display glasses.

Meta gained over 9% year-to-date as it aggressively remains invested in its AI ambitions and its metaverse struggles.

It is accelerating its push to strengthen U.S. leadership in AI by committing more than $600 billion through 2028 to expand next-generation AI infrastructure, data centers, and workforce capabilities as it pursues its vision of "personal superintelligence" for consumers.

In related news, Meta has strengthened its consumer hardware and AI push by hiring **Apple Inc.'s** (NASDAQ: AAPL) longtime human interface design chief, Alan Dye, who joins as Meta's chief design officer on December 31 after shaping the design of major Apple products for nearly two decades.

**Price Action:** Meta stock traded 3.73% higher to $662.92 at last check on Thursday.

<p><strong>Meta Platforms Inc.</strong> <a href="https://www.benzinga.com/quote/META" target="_blank" class="ticker-link" data-ticker="META" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/META">META</a>)</a> stock gained after a report indicated that the Facebook parent is preparing to reduce resources for its metaverse efforts significantly.</p>



<p>CEO Mark Zuckerberg had previously touted the metaverse project as central to the company's future and the reason behind the renaming of <strong>Facebook Inc</strong>.</p>



<p>Executives are reviewing budget cuts of up to 30% for the metaverse group in 2026, which oversees Meta Horizon Worlds and the Quest virtual reality unit, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-12-04/meta-s-zuckerberg-plans-deep-cuts-for-metaverse-efforts?sref=TBDibEcD" rel="noreferrer noopener">reported</a>.</p>



<p><strong><em>Also Read: <a target="_blank" href="https://www.benzinga.com/markets/tech/25/11/49003311/meta-becomes-an-energy-trader-to-feed-its-massive-ai-power-needs" rel="noreferrer noopener">Meta Becomes An Energy Trader To Feed Its Massive AI Power Needs</a></em></strong></p>



<p>These reductions could include layoffs as early as January, according to the report.</p>



<p>Zuckerberg requested that Meta executives identify 10% cuts across all divisions during the annual budget planning, but the metaverse team faces deeper reductions due to lower-than-expected competition and adoption in the virtual worlds market.</p>



<p>Most of the cuts are expected to hit the virtual reality segment, which accounts for the bulk of metaverse spending, and will also affect Horizon Worlds.</p>



<p>The metaverse division, part of Reality Labs, has lost over $70 billion since 2021, drawing scrutiny from investors concerned about resource drain and from watchdogs over privacy and safety issues.</p>



<h2 class="wp-block-heading">Meta&#8217;s AI Push</h2>



<p>Meta has shifted public focus toward AI and related hardware, such as large AI models and Meta's Ray-Ban smart display glasses.</p>



<p>Meta gained over 9% year-to-date as it aggressively remains invested in its AI ambitions and its metaverse struggles.</p>



<p>It is <a target="_blank" href="https://www.benzinga.com/markets/tech/25/11/48728638/meta-to-spend-600-billion-in-us-on-ai-aims-for-personal-superintelligence-for-everyone" rel="noreferrer noopener">accelerating its push</a> to strengthen U.S. leadership in AI by committing more than $600 billion through 2028 to expand next-generation AI infrastructure, data centers, and workforce capabilities as it pursues its vision of "personal superintelligence" for consumers.</p>



<p>In related news, Meta has strengthened its consumer hardware and AI push by hiring <strong>Apple Inc.'s</strong> <a href="https://www.benzinga.com/quote/AAPL" target="_blank" class="ticker-link" data-ticker="AAPL" data-exchange="NASDAQ" rel="noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/AAPL">AAPL</a>)</a> longtime human interface design chief, Alan Dye, who joins as <a target="_blank" href="https://www.benzinga.com/node/49209499" rel="noreferrer noopener">Meta's chief design officer</a> on December 31 after shaping the design of major Apple products for nearly two decades.</p>



<p><strong>Price Action:</strong> Meta stock traded 3.73% higher to $662.92 at last check on Thursday.</p>



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<p><em>Image via Shutterstock</em></p>