Meta’s Strategic Pivot: From Virtual Worlds to AI Dominance

Meta Platforms Inc. is executing a significant strategic shift, moving its primary focus away from the metaverse and toward artificial intelligence. This realignment includes plans to reduce its workforce in the Reality Labs division by 10% to 30%, with cuts potentially starting as soon as January 2026. The market’s reaction to this corporate repositioning has been measured.

Despite the strategic redirection, the company’s core business remains strong. For the third quarter of 2025, Meta reported revenue of $51.24 billion, representing a 26% year-over-year increase. The number of ad impressions served across its platforms grew by 14%, while the average price per ad rose by 10%. Operating cash flow reached $30 billion.

Looking ahead, management provided fourth-quarter Read more...