Meta's metaverse spending (2021-2023)
Mark Zuckerberg redirected Meta toward the metaverse, pouring tens of billions into the Reality Labs division. Profit fell and the stock slid about 60% in 2022 as investors questioned the payback.
Meta shifted priorities, cut costs, and moved more capital into AI while the metaverse bet stayed on the books.
The episode became a case study in how markets punish heavy speculative capex until revenue appears.
Alibaba faces the same dynamic: the placement funds AI spending that already cut net profit 75% in a single quarter.
