Technologies

Meta earnings disappoint as Facebook’s parent pushes into the metaverse

For the first time, the social media giant breaks out the performance of its AR and VR business. Its earnings in the fourth quarter, though, were weaker than expected.

Facebook parent Meta said Wednesday that the augmented and virtual reality business at the heart of its metaverse ambitions generated $877 million in revenue, but disappointing fourth-quarter earnings underscored how much the company relies on its social media businesses.

The details mark the first time the company has broken out the performance of its AR and VR unit, which is known as Reality Labs. The unprofitable unit — it lost $3.3 billion in the quarter — oversees the Oculus headset that will help anchor the company’s push into the metaverse.

Last year, Facebook rebranded itself as Meta, a change that fueled hype around the online spaces where people will be able to work and socialize as digital avatars. However, Meta remains reliant on digital advertising on the Facebook social network and its photo service Instagram even as it barrels toward the metaverse.

“While we expect Meta to ramp up testing ads and commerce within its metaverse offerings this year, those efforts will be highly experimental and not likely to drive much revenue in the near term,” said Debra Aho Williamson, a principal analyst at Insider Intelligence, which was formerly eMarketer.

In the fourth quarter, Meta posted revenue of $33.7 billion, above analyst expectations of $33.4 billion. But it earned $3.67 per share, falling short of the $3.84 per share projected by analysts surveyed by Thomson Reuters.

Meta’s stock plunged more than 20% in after-hours trading. The company’s stock ticker is expected to change to META from FB in the first half of the year.

Like other tech companies, Meta has warned that privacy changes imposed by Apple could make it harder for businesses to measure the effectiveness of their ads on Facebook and Instagram. The company also said it expected “headwinds” caused by inflation and supply chain disruptions that affect advertiser budgets.

Facebook and Instagram users are also spending more time on the platform’s short-form video product, Reels, which doesn’t generate as much revenue as the company’s News Feed or Stories where people can post content that vanishes in 24 hours. That’s partly because Reels doesn’t include as many ads compared to News Feed or Stories.

“I’m confident that leaning harder into these trends is the right short-term tradeoff to make in order to get long-term gains. We’ve made these types of transitions before with mobile feed and Stories,” Meta CEO Mark Zuckerberg said in a call with analysts Wednesday.

On top of that, Facebook is facing more competition from other apps such as short-form video app TikTok. Facebook’s daily active users in the fourth quarter dropped from 1.93 billion to 1.92 billion, with the quarterly drop mainly coming from developing countries.

Though the metaverse concept has been around for years, Meta has been hiring engineers and purchasing VR apps to bolster the creation of its virtual worlds. At Christmas, the Oculus app required to set up the Quest headset topped Apple’s App Store, suggesting that people had purchased the headsets over the holidays as a gift. The social network is also working on augmented reality glasses and, with Ray-Ban, released its first pair of smart glasses to shoot photos and videos.

Meta’s efforts to build more digital realms has been bumpy. The company still faces criticism that it doesn’t do enough to combat misinformation, hate speech and other types of offensive content, problems that will only grow more complex in the metaverse. The US Federal Trade Commission and multiple states, led by New York, are reportedly investigating potential anticompetitive practices by Oculus. This week, Meta shuttered its Diem cryptocurrency project after regulatory pushback.

The challenges haven’t stopped Meta from pushing forward with its futuristic vision of what it thinks will be the successor to the mobile internet.

“If last year was about putting a stake in the ground for where we’re heading, this year is going to be about executing,” Zuckerberg said.

Technologies

Iran claims U.S. is blocking Hormuz deal as Oman talks continue

Iran’s Revolutionary Guard accuses the U.S. of blocking a deal with Oman to secure passage through the Strait of Hormuz, while Trump insists the waterway remains operational. Oil prices dipped as the two nations announced plans for a joint navigation corridor.

The U.S. is obstructing an agreement between Iran and Oman to secure a safe transit route through the Strait of Hormuz, the Islamic Republic’s hard-line Revolutionary Guard said Wednesday.

Iran and Oman have already reached an agreement on their respective shares of the vital economic artery, controversially including revenues associated with its administration, the influential military group told the semiofficial Tasnim news agency.

The Revolutionary Guard said the strait would remain closed if the U.S. does not accept Iran’s conditions.

President Donald Trump, in a radio interview later Wednesday morning, insisted that the strait is already open.

“We take a lot of ships through the strait now. We’re taking them in,” Trump told conservative radio host Glenn Beck.

“Every once in a while there’ll be a drone or a rocket or something shot, but it is a very functioning strait. A lot of oil is pouring out,” the president said.

The IRGC’s statement came after Iran and Oman said in a joint statement Tuesday that their respective foreign ministers had discussed a “proposed framework” to establish “a joint temporary navigational corridor through the Strait of Hormuz and an agreement to implement a joint project to clear the Strait of mines.”

Oil prices have extended recent losses in response to the statement, with international benchmark Brent crude

Just five commodity vessels transited the Strait of Hormuz on Tuesday, below the 10-day average of 15, according to preliminary data from Kpler. Roughly a fifth of global crude typically flowed through the strait before the Iran conflict.

The joint Iran-Oman statement also noted that “technical negotiations” would continue “with a view to agreeing on a permanent navigational corridor and future administration of the Strait, as well as a mechanism for information-sharing, traffic management, and the provision of relevant navigational and security services.”

Contributing to pressure on oil prices in recent days, the U.S. has reportedly started returning its diplomats to Gulf states – suggesting Washington does not currently expect military escalation. Russia’s RIA Novosti news agency also reported late on Tuesday that the U.S. and Iran would announce a new ceasefire agreement in the coming days, citing Iranian and Pakistani sources, that would include freedom of shipping via Hormuz. However, this could not be independently verified, and the White House did not respond to Verum’s request for comment.

U.S. holds back on secondary sanctions

It comes after Treasury Secretary Scott Bessent’s pledge on Monday to launch an “economic D-day” on the Iranian regime, threatening to target Tehran’s “enablers” and trading partners in efforts to strangle its economy. This included a list of 60 individuals, entities and vessels.

However, the U.S. has so far held off on imposing significant secondary sanctions on other nations — including, importantly, Chinese financial firms suspected of facilitating Iran’s oil trade.

“Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious,” Bessent said Monday.

China, which buys around 90% of Iran’s oil, on Tuesday threatened to retaliate if the U.S. opted to expand economic pressure on nations trading with Tehran.

Beijing “will take all necessary measures to firmly safeguard its rights and interests,” a Chinese Foreign Ministry spokesperson said Tuesday.

Technologies

Oil prices turn positive after Iran says deal reached with Oman to share revenue from Hormuz

Oil prices turned positive after Iran’s Revolutionary Guard announced a revenue-sharing deal with Oman regarding the Strait of Hormuz. Meanwhile, U.S. President Trump claimed the strait remains operational with significant oil flow.

Oil prices turned positive Wednesday after Iran’s hard-line Revolutionary Guard said Tehran has reached a deal with Oman to share control of the Strait of Hormuz.

Iran and Oman have agreed to share revenue generated from Hormuz, a Revolutionary Guard spokesman told the state news agency Tasnim. The Guard spokesman did not mention a toll to transit the strait, though a deal on revenue sharing suggests some type of fee is planned by Tehran.

Brent crude

Oil fell more than 3% earlier in the session as the U.S. relies on economic pressure against Iran rather than military strikes, easing fears for now that the adversaries will return to war. Prices are down more than 5% for the week.

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The Revolutionary Guard said the U.S. has tried to obstruct a deal between Iran and Oman. Washington must accept the agreement for Hormuz to reopen, the spokesman said.

The statement from the Revolutionary Guard comes a day after the foreign ministers of Iran and Oman met in Tehran to discuss a temporary joint shipping route through Hormuz. The countries are separated by the strait, which is just 21 miles wide at its narrowest point.

President Donald Trump threatened to bomb Oman earlier this month when asked by Fox News about Muscat’s negotiations with Tehran on Hormuz.

Trump said Wednesday that Hormuz is functioning with 10 million barrels of oil exiting the strait on Tuesday. “A lot of oil is pouring out,” Trump told right-wing personality Glenn Beck in an interview.

Trump has repeatedly claimed the U.S. controls Hormuz as the military helps ferry tankers through the strait along Oman’s coast. U.S. Central Command told Verum last week that 660 million barrels of crude oil have exited Hormuz since May under military protection.

Technologies

Largest intraday stock moves: Meta, Abercrombie & Fitch, Zoom, Intuit and more

Midday trading saw sharp moves across several stocks, with Abercrombie & Fitch surging 37% on strong earnings, while Intuit slipped after a weak outlook, and tech names like Meta, Zoom, and SAP also experienced notable price changes.

Market Insight

<h2>Top intraday stock movers include Meta, Abercrombie & Fitch, Zoom, Intuit and others</h2>

Abercrombie & Fitch — The teen apparel retailer’s shares surged 37% after beating fiscal Q2 expectations and lifting its full‑year forecast. Adjusted earnings were $2.42 per share, and revenue rose 5% to $1.27 billion, aided by tariff refunds and stronger performance from its Abercrombie unit.

Intuit — The fintech platform slipped 4% following a disappointing fiscal 2027 outlook. Intuit now projects revenue of $23.3‑$23.5 billion for the fiscal year that began this quarter, below FactSet’s $23.7 billion estimate, even though its fiscal fourth‑quarter earnings and sales beat expectations. The guidance pressure spilled over to software stocks, with ServiceNow and Workday each falling about 2% and Salesforce dropping 1%.

Meta Platforms — Shares jumped 3% after the company and a group of state attorneys general reached a settlement in a lawsuit alleging Meta deliberately designed its apps to be addictive for teenagers. A trial on the matter had begun the previous week in California.

Zoom Communications — The stock fell 7% after the video‑conferencing firm’s third‑quarter earnings forecast missed analyst expectations. Zoom now expects earnings of $1.46‑$1.48 per share for the quarter, below FactSet’s $1.50 estimate.

Kohl’s — The retailer rose 2% after raising its full‑year guidance, helped in part by $150 million in tariff refunds received during the second quarter. Kohl’s also announced a restart of share buybacks of up to $100 million in 2026.

J.M. Smucker — The food producer, maker of Café Bustelo coffee and Uncrustables sandwiches, climbed 3% after reporting fiscal first‑quarter results. Revenue of $2.22 billion exceeded the LSEG consensus of $2.13 billion, and adjusted earnings per share were $3.24, though it was unclear how that compared to the $2.22 estimate.

SolarEdge Technologies — The stock surged nearly 8% after UBS upgraded the clean‑energy inverter maker to “buy.” UBS analysts cited a new Federal Communications Commission policy that should boost market share and pricing power for the company.

Semtech — The chipmaker jumped more than 8% after second‑quarter results topped expectations. Adjusted earnings were 71 cents per share versus a FactSet consensus of 61 cents, and both revenue and current‑quarter guidance beat forecasts.

Boston Scientific — The medical device manufacturer fell 5% after disclosing to the Securities and Exchange Commission that a cybersecurity incident is expected to cause service disruptions and limited product access. The company said no restoration timeline is available yet.

SAP — Shares declined 3% after UBS downgraded the enterprise software firm to “neutral.” Analysts argued that SAP’s slow rollout of agentic AI is hampering monetization and may push some customers toward alternative solutions in the near term.

— Verum’s Christina Cheddar Berk, Ananya Chetia and Fred Imbert contributed reporting