Brew Markets Meta’s Virtual Reality Check & Kroger Shelves Its Automation Push
Dec 4, 2025
Meta is slashing its metaverse budget, drawing parallels to Amazon's strategy of fast failures. Kroger has missed sales targets and decided to halt its automation plans, shedding light on costly automated warehouses and labor challenges. Meanwhile, Snowflake shows signs of slowing growth despite beating revenue expectations. The hosts also touch on market movements and recent headlines from iRobot, Dollar General, and PVH, providing a fast-paced overview of significant market developments.
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Meta's Costly Course Correction
- Meta cut metaverse spending after $70B of losses to reallocate cash toward AI and other priorities.
- Ann Berry argues pivoting away from failed bets is critical for large public companies to preserve cash and focus.
Amazon's Fail-Fast Playbook
- Ann Berry recounts Amazon's pattern of experimenting, failing quickly, and then doubling down on winners.
- She lists failed Amazon projects like Haven, Destinations, and Crucible to illustrate that rapid failure is part of innovation.
Kroger Shelves Automation Push
- Kroger abandoned a $2.6B automated fulfillment effort and took a $1.5B impairment after automation didn't meet speed or cost expectations.
- The chain will instead lean on existing stores plus third-party delivery partners like Instacart and DoorDash to fulfill e-commerce orders.