Meta Platforms (NASDAQ:META) is closing its Portal smart display business and stopping work on two smartwatch projects as part of its cost-cutting initiatives. The news was first reported by Reuters, which cited Meta executives who spoke at an employee townhall meeting.
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The move comes just days after the company’s announcement to layoff about 11,000 employees.
Portal, a video-calling device, was launched in 2018 and gained traction during the pandemic. However, there were privacy concerns about Portal. Earlier this year, Meta announced plans to stop selling the device as a consumer product. Now, it’s pulling the product from the markets altogether.
Coming to Meta’s smartwatches, development on one of the watches was midway while the company had just started working on the other. Notably, Meta was planning to distinguish its smartwatch from its peers by including a camera in it.
Nevertheless, Meta continues to bolster its Reality Labs division, despite all the cost-cutting measures, on the belief that the metaverse is the future of the internet. It remains optimistic about products like augmented reality glasses. The company recently acquired Audio Analytic, a startup involved in building AI-driven sound recognition software.
Is Meta Stock a Buy or Sell?
At TipRanks, Meta Platforms stock has a Moderate Buy consensus rating based on 26 Buys, 10 Holds, and three Sells. The average META stock price target of $146.46 implies 29.59% upside potential from the current levels.
