Investors cheer Meta’s reported Metaverse cuts, a segment that has bled $73B in losses

Meta Platforms (META) stock on Thursday gained after a report that the Facebook parent was looking at cuts in its loss-making Metaverse operations.

Executives at the tech giant, including top boss Mark Zuckerberg, have discussed potential budget cuts of as high as 30% for the business, Bloomberg News said, citing people familiar with the talks. Class A shares of Meta (META) were last +3.9% in afternoon trade.

Zuckerberg in October 2021 had rebranded Facebook into Meta Platforms (META) and said the future of the company lay in building a digital metaverse. However, losses at Reality Labs, the segment that houses its augmented reality and virtual reality products, have continued to pile up since its inception.

META recorded $4.43B in loss from operations from the Reality Labs segment in Q3 2025, and its cumulative losses now total $73.04B.

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Meta’s (META) pop on Thursday’s news briefly pushed the mega-cap stock above its 50-, 100-, and 200-day moving averages.