Meta's Reality Labs Lost $19B; Muse AI Tops App Charts Amid $4.2T Capex Push
META sits 41% above its 52-week low of $520.26.
Summary
Meta's Reality Labs division lost $19 billion last year, a massive cash burn that underscores the company's aggressive bet on the metaverse and AI hardware. The company is also among hyperscalers planning ~$4.2 trillion in capex through 2029, with ~$1.1 trillion in data-center spend through 2027, financed via debt and productivity gains. On the product side, Muse AI assistant launched Sept. 8 and hit No.1 free app for five days, with retail partnerships at Walmart, Best Buy, and Gap to drive transaction fees. Meta also unveiled strap-free VR glasses for spring 2027 at $1,299.99 and is integrating Muse with Google services. The company says Muse does not route user data into ad systems, addressing privacy concerns. Analysts speculate a large language model codenamed Watermelon could be unveiled at Connect. This follows Meta's Q2 report showing a 13.6% drop in net income despite 28% revenue growth, as AI costs and a $2.4B legal charge compressed margins.
At the time of this announcement, META was trading at $734.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.9T. The 52-week trading range was $520.26 to $770.60. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Wiseek News.