META Jumps 6.7% After 30% Cut to Metaverse Operations

⬤ Meta Platforms kicked off today’s session with a massive 6.7 percent pop right after CEO Mark Zuckerberg revealed the company is slashing Metaverse operations by 30 percent. The news sent META shooting up, briefly making it the top performer among the Mag 7 tech giants. That opening surge was dramatic—basically a vertical spike that showed just how excited traders were about the shift.

⬤ This marks a huge change in direction for Meta after years of pouring billions into virtual reality projects. Markets clearly liked what they heard, with the stock settling around 3.6 percent higher after the initial jump. “The decision to scale back Metaverse investment represents a major strategic shift,” as investors seem to think Meta’s finally prioritizing profitability over experimental spending. The stock held firm above $660 throughout the session, cooling off from the peak but maintaining solid gains.

⬤ What’s interesting is how fast sentiment flipped once the restructuring news dropped. Previous sessions had been pretty quiet, but today’s candle stands out like a sore thumb. Traders are betting that Meta’s smarter capital allocation will boost near-term earnings, especially as the company doubles down on AI development and its core advertising business that actually makes money.

⬤ This move could ripple across the entire tech sector. Meta’s pullback from expensive Metaverse projects might encourage other companies to rethink their own capital-heavy initiatives. The strong market reaction shows that investors are rewarding efficiency and practical spending over moonshot bets right now. With META holding its gains through the session, all eyes are on how Zuckerberg redirects those resources toward AI and whether other tech giants follow suit.

My Take: Meta’s 30% Metaverse cut is overdue common sense. After burning cash on virtual worlds nobody asked for, Zuckerberg’s pivot toward AI and profitability is exactly what shareholders needed. This isn’t surrender—it’s smart capital reallocation that should’ve happened sooner.

Source: That Martini Guy