Meta Platforms Inc. shares jumped 3.6% after reports indicated the company plans significant budget cuts for its Reality Labs division, which focuses on the metaverse. The division has faced over $70 billion in losses since 2021, and it’s expected that spending could be reduced by 30% in 2026.

Investors reacted positively to the shift in strategy, as Meta will focus more on artificial intelligence (AI) and reduce investments in the metaverse. This move was seen as a step toward improving the company’s financial performance. Meta’s shares closed at $661.70, up 3.5% from the previous close.

Meta’s stock remains 16.1% below its 52-week high of $790, reached in August 2025. Despite these challenges, the company has shown a 10.5% increase since the beginning of the year, indicating investor confidence in its long-term prospects.