Meta reported better-than-expected revenue growth, a positive development amid major restructuring and significant job cuts.

However, Meta’s investments in the metaverse continue to lose money, with the Reality Labs department for VR and AR losing nearly $4 billion in the first quarter alone.

CEO Mark Zuckerberg remains committed to the metaverse, stating that AI is a key technology that will work in tandem with the metaverse. While AI developments may ease investor concerns and boost Meta’s stock price, the metaverse is still struggling to turn a profit, and it remains to be seen whether Meta’s investments in this area will pay off in the long run.