Meta's Reality Labs on Track to End Multibillion-Dollar Losses as Company Diversifies Efforts
Mark Zuckerberg has provided a glimmer of hope for investors and analysts looking for a turnaround at Meta's struggling Reality Labs division. During the company's fourth-quarter earnings call, the CEO acknowledged that Reality Labs' multibillion-dollar losses will eventually come to an end.
Zuckerberg stated that he expects the division's losses this year to be similar to last year, but with a gradual reduction in the coming years as the company shifts its focus towards AI glasses and wearables. This pivot is part of Meta's broader strategy to invest more heavily in augmented reality (AR) technology and virtual intelligence.
The CEO emphasized that Reality Labs will prioritize developing smart glasses and wearables, which aligns with his vision for creating "superintelligence." Sales of Meta's smart glasses have already seen a significant surge, tripling in 2025 alone. Zuckerberg hinted at even bigger plans for AR glasses, suggesting they could revolutionize the way people interact with technology.
One area where Reality Labs will focus its efforts is on improving Horizon, an app currently designed for virtual reality (VR) gaming and social experiences. According to Zuckerberg, this platform has the potential to expand into a more immersive 3D world, enabling users to share and engage with content in new ways.
The CEO's comments marked a departure from previous discussions about Meta's metaverse ambitions, which have been largely centered around VR technology. Instead, Reality Labs seems to be poised for a new era of innovation focused on AR advancements.
As the company continues to invest in AI research and development, it remains to be seen whether these efforts will yield the desired results. However, with Zuckerberg at the helm, investors may now see some reason to believe that Reality Labs' financial struggles are finally coming to an end.
Mark Zuckerberg has provided a glimmer of hope for investors and analysts looking for a turnaround at Meta's struggling Reality Labs division. During the company's fourth-quarter earnings call, the CEO acknowledged that Reality Labs' multibillion-dollar losses will eventually come to an end.
Zuckerberg stated that he expects the division's losses this year to be similar to last year, but with a gradual reduction in the coming years as the company shifts its focus towards AI glasses and wearables. This pivot is part of Meta's broader strategy to invest more heavily in augmented reality (AR) technology and virtual intelligence.
The CEO emphasized that Reality Labs will prioritize developing smart glasses and wearables, which aligns with his vision for creating "superintelligence." Sales of Meta's smart glasses have already seen a significant surge, tripling in 2025 alone. Zuckerberg hinted at even bigger plans for AR glasses, suggesting they could revolutionize the way people interact with technology.
One area where Reality Labs will focus its efforts is on improving Horizon, an app currently designed for virtual reality (VR) gaming and social experiences. According to Zuckerberg, this platform has the potential to expand into a more immersive 3D world, enabling users to share and engage with content in new ways.
The CEO's comments marked a departure from previous discussions about Meta's metaverse ambitions, which have been largely centered around VR technology. Instead, Reality Labs seems to be poised for a new era of innovation focused on AR advancements.
As the company continues to invest in AI research and development, it remains to be seen whether these efforts will yield the desired results. However, with Zuckerberg at the helm, investors may now see some reason to believe that Reality Labs' financial struggles are finally coming to an end.