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Parmy Olson

Zuckerberg Pulls Back the Reins in His Metaverse Race

Investors are lapping up Meta’s move to pare back virtual reality spending as Facebook sees a slight rebound in user growth. Don’t bet it will last, though.  

Good news … for now.

Good news … for now.

Source: Bloomberg

You can forgive Facebook investors for feeling aghast at the company this year. Before Thursday’s rally, shares had fallen by 40% as Meta Platforms Inc. said that its daily active users had declined for the first time ever and that its expenses would balloon to $90-$95 billion as it built the still-very-theoretical metaverse.

Chief Executive Officer Mark Zuckerberg has now given them some relief, no doubt because he was under increasing pressure to do so. He’s pulling the reins on the company’s virtual reality spending — but only just enough to signal that he isn’t neglecting his fiduciary responsibility or the core social networking sites that make all the money.