✅— Cuts Could Free Up Capital For 🍀 AI and ✨Boost Stocks by +20%✨, Says Mizuho.

Analysts claim that trimming Reality Labs could unlock billions for AI, improve profits, and boost the target price to $815 — with an optimistic scenario reaching $1,245

Meta Platforms (NASDAQ:META) is under new pressure from Wall Street to redirect resources from the metaverse to artificial intelligence — and, according to Mizuho Bank, an aggressive adjustment could trigger a strong revaluation of the stocks.

In a report published this Tuesday, Mizuho classified the Reality Labs division — responsible for the Quest headsets, mixed reality devices, and the Horizon Worlds project — as an “80 billion dollar black hole” in losses accumulated since its launch.

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💸 Reality Labs: the center of criticism

The operational costs of the unit far exceed the adoption of the products, while enthusiasm for the metaverse evaporated in the face of the rise of AI.

According to Mizuho:

• Reality Labs' spending has been massive and inefficient.

• The metaverse has lost traction and does not deliver proportional returns.

• Cuts of up to 30% would be the ideal scenario.

These reductions, analysts claim, would add about US$ 2 per share to the earnings of 2026, immediately improving the company's financial profile.

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📈 AI is the new growth axis — and Meta can accelerate

Mizuho reiterates Outperform recommendation (above market performance) and states:

• Base target price: US$ 815

• Bull case: US$ 1.245, if growth led by AI accelerates

✨ The target of US$ 815 represents a potential of +21% compared to the current price of US$ 672, according to Google Finance data. ✨

For analysts, every dollar saved in the metaverse represents additional room for:

• Generative models

• AI-driven advertising

• Server and chip infrastructure

• Internal automation projects

• Advances in Llama and multimodal AI

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🕳️ The metaverse collapses — and this increases the pressure

The collapse of the category of metaverse-linked tokens reinforces skepticism:

• The sector was worth more than US$ 500 billion at the beginning of the year

• Today it is worth less than US$ 3.2 billion, according to CoinGecko

This dismantling of value exposes the decline of the “hype” and strengthens the thesis that Meta needs to reallocate capital to projects with more tangible returns — such as AI and advertising automation.

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🥸 Analysts assess that:

• Meta will not completely abandon the metaverse

• But reducing spending now would improve margins, cash flow, and EPS

• And would put Meta in the AI race with even more strength

• Investors would tend to react positively to a more “streamlined” and focused Meta$AIA $COAI $AA