Meta Platforms has faced huge losses of $71 billion in Reality Labs in 2021, but profits from the Family of Apps have offset these losses. Shifting focus to AI and Family of Apps is seen as a positive move for investors. Meta’s stock price rose despite a decrease in the Nasdaq Composite, signaling approval of this strategic shift.

Meta Platforms, previously known as Facebook, rebranded to better reflect its expansion beyond social media. The Family of Apps, including Instagram, WhatsApp, and Messenger, has proven more valuable than the flagship Facebook app. While losses in Reality Labs have increased, the profitability of the Family of Apps has cushioned these losses.

Despite significant losses in Reality Labs, Meta’s stock has seen a 450% increase since 2023, outperforming the Nasdaq. The company’s revenue and earnings have surged, with an operating margin of 43.3%. With a shift towards AI and away from metaverse spending, Meta’s investment thesis has become more compelling for long-term investors.

Investors are keen on Meta’s decision to cut metaverse spending in favor of AI and the Family of Apps. The company’s focus on AI initiatives and the growth potential of the Family of Apps make Meta an attractive investment. Meta’s stock is viewed as a great buy with strong growth potential in the coming years, solidifying its position among top tech companies.

Read more at Nasdaq: Meta Platforms Stock Jumps on Metaverse Spending Cuts. Here’s Why the Growth Stock Is a Screaming Buy Before 2026