Since reporting its Q3 2025 earnings in late October, Magnificent Seven stock Meta Platforms (NASDAQ: META) has been in a rut. Shares fell by more than 11% on Oct. 30 in reaction to those results, closing near $666. The stock continued to trade down for multiple weeks, closing as low as $589. Fears surrounding Meta’s artificial intelligence (AI) spending have driven the stock’s decline. As of the Dec. 9 close, shares are trading at around $657, nearly recovering to their post-earnings level.
One development aiding the stock’s rebound directly addresses investor fears: potential budget cuts. As first reported by Bloomberg, CEO Mark Zuckerberg is considering cutting the company’s metaverse spending by up to 30%. This news sent Meta shares up by 3.4% on Dec. 4. Below, we’ll break down what metaverse spending cuts would actually mean and why this is a clear positive development for Meta Platforms going forward.
