{"id":109991,"date":"2026-04-30T05:16:41","date_gmt":"2026-04-30T05:16:41","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/04\/30\/metas-ai-investments-cost-far-more-than-vr-and-investors-arent-happy-about-it\/"},"modified":"2026-04-30T05:17:44","modified_gmt":"2026-04-30T05:17:44","slug":"metas-ai-investments-cost-far-more-than-vr-and-investors-arent-happy-about-it","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/04\/30\/metas-ai-investments-cost-far-more-than-vr-and-investors-arent-happy-about-it\/","title":{"rendered":"Meta&#8217;s AI investments cost far more than VR, and investors aren&#8217;t happy about it"},"content":{"rendered":"<p>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" id=\"article-body\">\n<h2 id=\"what-you-need-to-know-3\">What you need to know<\/h2>\n<ul id=\"elk-00ad0add-c9fa-4a3a-a334-c1406cefdc78\">\n<li>Meta reports record earnings growth for Q1 2026, with the company reporting revenue of $56.31 billion, an increase of 33% year-over-year.<\/li>\n<li>Meta spending also increased 35% from last year, with $33 billion spent from January 1 to March 31, 2026.<\/li>\n<li>Meta indicated that its expenses will continue to rise due to global component issues, now estimated at between $125 billion and $145 billion for the year.<\/li>\n<\/ul>\n<p id=\"elk-d11fcac0-333a-4e35-a384-adfccd504e4d\" class=\"paywall\" aria-hidden=\"true\">Meta makes a lot of money, and the first quarter of 2026 is the highest ever inflow into the company&#8217;s coffers. Meta&#8217;s family of apps, which includes Facebook, Instagram, WhatsApp and Messenger, raked in a staggering $55.9 billion. Meanwhile, Meta&#8217;s Reality Labs products, such as <a rel=\"nofollow noopener\" target=\"_blank\" data-analytics-id=\"inline-link\" href=\"https:\/\/www.androidcentral.com\/tag\/meta-quest\" data-auto-tag-linker=\"true\" data-url=\"https:\/\/www.androidcentral.com\/tag\/meta-quest\" data-hl-processed=\"none\" data-mrf-recirculation=\"inline-link\" data-before-rewrite-localise=\"https:\/\/www.androidcentral.com\/tag\/meta-quest\">Sales of Meta Quest, Ray-Ban AI glasses and the game alone brought in $402 million. Meta&#8217;s Q4 2025 earnings are the highest ever at $59.89 billion.<\/p>\n<p class=\"paywall\" aria-hidden=\"true\">The huge increase in revenue over the past year can be directly attributed to the company&#8217;s use of AI in its advertising business, which helps target specific customers for ads. CEO Mark Zuckerberg cites this as one of the biggest reasons the company is spending so much on its AI development and infrastructure, and while it&#8217;s clearly paying off in the quarterly statements, investors still seem somewhat cautious about the future.<\/p>\n<p class=\"paywall\" aria-hidden=\"true\">At the time of the earnings call, Meta shares were <a rel=\"nofollow noopener\" target=\"_blank\" data-analytics-id=\"inline-link\" href=\"https:\/\/www.investing.com\/news\/earnings\/meta-stock-slips-more-than-6-after-hours-on-raised-capital-expenditure-guidance-4646698\" data-url=\"https:\/\/www.investing.com\/news\/earnings\/meta-stock-slips-more-than-6-after-hours-on-raised-capital-expenditure-guidance-4646698\" referrerpolicy=\"no-referrer-when-downgrade\" data-hl-processed=\"none\" data-mrf-recirculation=\"inline-link\">down about 6%<\/a>Because the company had reported its earnings much before the public call.<\/p>\n<p><span class=\"article-continues-below block py-2 text-sm\">Article continues below <default:svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" class=\"inline-block w-2.5 h-2.5 ml-2\" fill=\"currentColor\" preserveaspectratio=\"xMidYMid meet\" viewbox=\"0 0 1000 1000\"><default:path d=\"M1000 100L500 900 0 100h1000z\"\/><\/default:svg><\/span><\/p>\n<aside data-component-name=\"Recirculation:ArticleRiver\" data-recirculation-type=\"inline\" data-mrf-recirculation=\"Trending Bar\" data-nosnippet=\"\" class=\"clear-both pt-2 pb-0 mb-4\">\n        <span class=\"&#10;            flex&#10;            after:content-('') after:flex-1 after:ml-4 after:my-(0.7rem) after:border-t after:border-solid after:border-t-(#ccc)&#10;            before:content-('') before:flex-1 before:mr-4 before:my-(0.7rem) before:border-t before:border-solid before:border-t-(#ccc)&#10;            font-article-heading pb-0 text-(length:var(--article-river-title--font-size,1em)) uppercase sm:text-(length:var(--article-river-title--font-size,0.875em)) font-bold&#10;        \"><\/p>\n<p>            you may like<br \/>\n        <\/span><\/p>\n<\/aside>\n<figure class=\"van-image-figure inline-layout\" data-bordeaux-image-check=\"\" id=\"elk-7be9e401-f6f8-4d9c-b5d9-d9aa73aa373b\">\n<div class=\"image-full-width-wrapper\">\n<div class=\"image-widthsetter\" style=\"max-width:701px;\">\n<p class=\"vanilla-image-block\" style=\"padding-top:33.24%;\"> <picture data-new-v2-image=\"true\"><source type=\"image\/webp\" srcset=\"https:\/\/cdn.mos.cms.futurecdn.net\/34zTX3Szqs3vK9Zgwz7rSA-701-80.jpg.webp 1200w, https:\/\/cdn.mos.cms.futurecdn.net\/34zTX3Szqs3vK9Zgwz7rSA-701-80.jpg.webp 1024w, https:\/\/cdn.mos.cms.futurecdn.net\/34zTX3Szqs3vK9Zgwz7rSA-701-80.jpg.webp 970w, https:\/\/cdn.mos.cms.futurecdn.net\/34zTX3Szqs3vK9Zgwz7rSA-650-80.jpg.webp 650w, https:\/\/cdn.mos.cms.futurecdn.net\/34zTX3Szqs3vK9Zgwz7rSA-480-80.jpg.webp 480w, https:\/\/cdn.mos.cms.futurecdn.net\/34zTX3Szqs3vK9Zgwz7rSA-320-80.jpg.webp 320w\" sizes=\"(min-width: 1000px) 970px, calc(100vw - 40px)\"\/><\/picture><\/p>\n<\/div>\n<\/div><figcaption itemprop=\"caption description\" class=\" inline-layout\"><span class=\"credit\" itemprop=\"copyrightHolder\">(Image credit: Meta)<\/span><\/figcaption><\/figure>\n<p id=\"elk-d0074f6a-c3fb-45a8-a0d3-13df601f0557\">The major uncertainty appears to stem from two big issues: massive infrastructure costs, which have been made worse by this year&#8217;s dire component supply shortages and cost overruns, as well as what investors are calling an &#8220;unclear strategy.&#8221;<\/p>\n<aside data-block-type=\"embed\" data-render-type=\"fte\" data-skip=\"dealsy\" data-widget-type=\"seasonal\" class=\"hawk-root\"\/>\n<p id=\"elk-d0074f6a-c3fb-45a8-a0d3-13df601f0557-1\">Meta is now saying that the cost of AI development could rise by $30 billion this year from the initial low estimate. Investing.com senior analyst Jesse Cohen said that &#8220;Meta&#8217;s earnings decline was mitigated by a capex surprise. Investors are digesting the reality that Meta&#8217;s ambitious AI ambitions come with a hefty price tag that will pressure profitability in the near term.&#8221;<\/p>\n<p>While the company&#8217;s Meta Quest, Ray-Ban and Oakley AI glasses are making good headway in the market, year-over-year revenues are down slightly by $10 million. Meta has a strong hold in these markets and has little competition in VR or AI glasses at the moment, but companies like Samsung <a rel=\"nofollow noopener\" target=\"_blank\" data-analytics-id=\"inline-link\" href=\"https:\/\/www.androidcentral.com\/wearables\/samsungs-galaxy-glasses-leak-is-a-direct-shot-at-meta-ray-bans-crown\" data-url=\"https:\/\/www.androidcentral.com\/wearables\/samsungs-galaxy-glasses-leak-is-a-direct-shot-at-meta-ray-bans-crown\" data-hl-processed=\"none\" data-mrf-recirculation=\"inline-link\" data-before-rewrite-localise=\"https:\/\/www.androidcentral.com\/wearables\/samsungs-galaxy-glasses-leak-is-a-direct-shot-at-meta-ray-bans-crown\">New AI glasses are set to be introduced this year.<\/p>\n<figure class=\"van-image-figure inline-layout\" data-bordeaux-image-check=\"\" id=\"elk-a84d76bc-60ef-40f2-bfa5-3db4dd8b9a50\">\n<div class=\"image-full-width-wrapper\">\n<div class=\"image-widthsetter\" style=\"max-width:2048px;\">\n<p class=\"vanilla-image-block\" style=\"padding-top:56.25%;\"> <picture data-new-v2-image=\"true\"><source type=\"image\/webp\" srcset=\"https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-1200-80.jpg.webp 1200w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-1024-80.jpg.webp 1024w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-970-80.jpg.webp 970w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-650-80.jpg.webp 650w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-480-80.jpg.webp 480w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-320-80.jpg.webp 320w\" sizes=\"(min-width: 1000px) 970px, calc(100vw - 40px)\"\/><img decoding=\"async\" src=\"https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM.jpg\" alt=\"A BoboVR S3 Pro installed on a Meta Quest 3 headset\" srcset=\"https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-1200-80.jpg 1200w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-1024-80.jpg 1024w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-970-80.jpg 970w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-650-80.jpg 650w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-480-80.jpg 480w, https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM-320-80.jpg 320w\" sizes=\"(min-width: 1000px) 970px, calc(100vw - 40px)\" loading=\"lazy\" data-new-v2-image=\"true\" data-original-mos=\"https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM.jpg\" data-pin-media=\"https:\/\/cdn.mos.cms.futurecdn.net\/Ad6YsjupeJy8xcWnKJFDfM.jpg\" class=\"rounded-(var(--image--border-radius,0)) inline\"\/>\n<\/picture><\/p>\n<\/div>\n<\/div><figcaption itemprop=\"caption description\" class=\" inline-layout\"><span class=\"credit\" itemprop=\"copyrightHolder\">(Image credit: Nicholas Sutrich\/Android Central)<\/span><\/figcaption><\/figure>\n<p id=\"elk-55474e84-a836-49b9-a7a3-643061a24808\">But revenue growth for these products has been surprisingly slow, and that&#8217;s why investors have been scared over the past few years as Meta has invested tens of billions of dollars in R&#038;D for AR and VR products. During the call, Meta specifically cited lower-than-expected Quest sales as one of the reasons for the decline.<\/p>\n<div id=\"slice-container-newsletterForm-articleInbodyContent-Snuk7ZRNB8jmpiCmtrevxT\" class=\"slice-container newsletter-inbodyContent-slice newsletterForm-articleInbodyContent-Snuk7ZRNB8jmpiCmtrevxT slice-container-newsletterForm\">\n<div data-hydrate=\"true\" class=\"newsletter-form__wrapper newsletter-form__wrapper--inbodyContent\">\n<div class=\"newsletter-form__container\">\n<section class=\"newsletter-form__top-bar\"\/>\n<section class=\"newsletter-form__main-section\">\n<p class=\"newsletter-form__strapline\">Get the latest news from Android Central, your trusted partner in the world of Android<\/p>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<p>&#8220;The critical threshold will be when we see rising capex in consecutive quarters with declining revenue growth,&#8221; Cohen said. &#8220;If that happens, the narrative will permanently change from &#8216;building for the future&#8217; to &#8216;burning cash on a speculative vision&#8217; with no guaranteed payout.&#8221;<\/p>\n<p>That last part is the real threat, as Meta is desperately hoping to avoid another Reality Labs debacle, where investors talked about &#8220;losses&#8221; every quarter despite Zuckerberg touting AR and VR vision as the future of computing.<\/p>\n<hr id=\"elk-d0d9ed85-1f69-4b82-b828-3d5200af2253\"\/>\n<h2 id=\"android-central-s-take-3\">Taking Android Central<\/h2>\n<p id=\"elk-0ffa1ea7-2810-4632-852a-808143319dbd\">Meta debuted Meta Spark, a new closed-source AI agent, just ahead of the earnings call. Zuckerberg said that his &#8220;view of AI is very different from others in the industry,&#8221; citing that AI should enhance what you want to do rather than replace humans. &#8220;People will be more important in the future, not less,&#8221; Zuckerberg said bluntly during the earnings call.<\/p>\n<p>But I&#8217;m not completely convinced by their approach, and it&#8217;s based on the company&#8217;s actions over the past few years. While Meta&#8217;s employee count of 77,986 is up 1% from last year, the company <a rel=\"nofollow noopener\" target=\"_blank\" data-analytics-id=\"inline-link\" href=\"https:\/\/www.androidcentral.com\/gaming\/virtual-reality\/meta-isnt-giving-up-on-vr-but-it-just-evaporated-any-goodwill-it-had-left\" data-url=\"https:\/\/www.androidcentral.com\/gaming\/virtual-reality\/meta-isnt-giving-up-on-vr-but-it-just-evaporated-any-goodwill-it-had-left\" data-hl-processed=\"none\" data-mrf-recirculation=\"inline-link\" data-before-rewrite-localise=\"https:\/\/www.androidcentral.com\/gaming\/virtual-reality\/meta-isnt-giving-up-on-vr-but-it-just-evaporated-any-goodwill-it-had-left\">Has spent substantial mindshare with massive public layoffs. While more people are clicking on the company&#8217;s ads than ever before, these moves are causing people to have a lower opinion of its physical products than ever before.<\/p>\n<p>Meta is truly a Silicon Valley company, and that means it moves fast, breaks things often, and abandons anything that doesn&#8217;t yield immediate results. The major changes made with the Meta Quest headset have left the VR community more uncertain than ever, and there is real concern that this fear could impact the company&#8217;s future endeavors if it continues on its current path.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What you need to know Meta reports record earnings growth for Q1 2026, with the company reporting revenue of $56.31 billion, an increase of 33% year-over-year. Meta spending also increased 35% from last year, with $33 billion spent from January 1 to March 31, 2026. Meta indicated that its expenses will continue to rise due<\/p>\n","protected":false},"author":1,"featured_media":109996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[2143,811,4045,3086,1219,3327],"class_list":{"0":"post-109991","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-devotionals","8":"tag-arent","9":"tag-cost","10":"tag-happy","11":"tag-investments","12":"tag-investors","13":"tag-metas"},"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/109991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=109991"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/109991\/revisions"}],"predecessor-version":[{"id":109997,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/109991\/revisions\/109997"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/109996"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=109991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=109991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=109991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}