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Supreme Court expands gun rights

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According to AP, in a major of gun rights after a series of mass shootings, the Supreme Court said Thursday that Americans have a right to carry firearms in public for self-defense, a ruling likely to lead to more people legally armed. The decision came out as Congress and states debate gun-control legislation.

About one-quarter of the U.S. population lives in states expected to be affected by the ruling, which struck down a New York gun law. The high court’s first major gun decision in more than a decade split the court 6-3, with the court’s conservatives in the majority and liberals in dissent.

The Supreme Court last issued a major gun decision in 2010. In that decision and a ruling from 2008 the justices established a nationwide right to keep a gun at home for self-defense. The question for the court this time was just about carrying a gun outside the home. Thomas, who turned 74 on Thursday, wrote in his opinion that: “Nothing in the Second Amendment’s text draws a home/public distinction with respect to the right to keep and bear arms.”

Across the street from the court, lawmakers at the Capitol sped toward passage of gun legislation prompted by recent massacres in Texas,New York and California. Senators cleared the way for the measure, modest in scope but still the most far-reaching in decades.

Also Thursday, underscoring the nation’s deep divisions over the issue, the sister of a 9-year-old girl killed in the school shooting in Uvalde, Texas, pleaded with state lawmakers to pass gun legislation. The Republican-controlled legislature has stripped away gun restrictions over the past decade.

President Joe Biden said in a statement he was “deeply disappointed” by the Supreme Court ruling. It “contradicts both common sense and the Constitution, and should deeply trouble us all,” he said.

He urged states to pass new laws. “I call on Americans across the country to make their voices heard on gun safety. Lives are on the line,” he said.

The decision struck down a New York law requiring people to demonstrate a particular need for carrying a gun in order to get a license to carry a gun in a concealed way in public. The justices said that requirement violates the Second Amendment right to “keep and bear arms.”

Justice Clarence Thomas wrote for the majority that the Constitution protects “an individual’s right to carry a handgun for self-defense outside the home.” That right is not a “second-class right,” Thomas wrote. “We know of no other constitutional right that an individual may exercise only after demonstrating to government officers some special need.”

California, Hawaii, Maryland, Massachusetts, New Jersey and Rhode Island all have laws similar to New York’s. Those laws are expected to be quickly challenged.

Gov. Kathy Hochul, D-N.Y., said the ruling came at a particularly painful time, with New York mourning the deaths of 10 people in a shooting at a supermarket in Buffalo. “This decision isn’t just reckless. It’s reprehensible. It’s not what New Yorkers want,” she said.

Gun control groups called the decision a significant setback. Michael Waldman, president of the Brennan Center for Justice and an expert on the Second Amendment, wrote on Twitter that the decision could be the “biggest expansion of gun rights” by the Supreme Court in U.S. history.

Republican lawmakers were among those cheering the decision. Tom King, president of the plaintiff New York State Rifle and Pistol Association, said he was relieved.

“The lawful and legal gun owner of New York State is no longer going to be persecuted by laws that have nothing to do with the safety of the people and will do nothing to make the people safer,” he said. “And maybe now we’ll start going after criminals and perpetrators of these heinous acts.”

The court’s decision is somewhat out of step with public opinion. About half of the voters in the 2020 presidential election said gun laws in the U.S. should be made more strict, according to AP VoteCast, an expansive survey of the electorate. An additional one-third said laws should be kept as they are, while only about 1 in 10 said gun laws should be less strict.

About 8 in 10 Democratic voters said gun laws should be made more strict, VoteCast showed. Among Republican voters, roughly half said laws should be kept as they are, while the remaining half closely divided between more and less strict.

In a dissent joined by his liberal colleagues, Justice Stephen Breyer focused on the toll from gun violence.

Since the beginning of this year, “there have already been 277 reported mass shootings — an average of more than one per day,” Breyer wrote. He accused his colleagues in the majority of acting “without considering the potentially deadly consequences” of their decision. He said the ruling would “severely” burden states’ efforts to pass laws “that limit, in various ways, who may purchase, carry, or use firearms of different kinds.”

Several other conservative justices who joined Thomas’ majority opinion also wrote separately to add their views.

Justice Samuel Alito criticized Breyer’s dissent, questioning the relevance of his discussion of mass shootings and other gun death statistics. Alito wrote that the court had decided “nothing about who may lawfully possess a firearm or the requirements that must be met to buy a gun” and nothing “about the kinds of weapons that people may possess.”

“Today, unfortunately, many Americans have good reason to fear they will be victimized if they are unable to protect themselves.” The Second Amendment, he said, “guarantees their right to do so.”

Justice Brett Kavanaugh, joined by Chief Justice John Roberts, noted the limits of the decision. States can still require people to get a license to carry a gun, Kavanaugh wrote, and condition that license on “fingerprinting, a background check, a mental health records check, and training in firearms handling and in laws regarding the use of force, among other possible requirements.”

Backers of New York’s law had argued that striking it down would lead to more guns on the streets and higher rates of violent crime. Gun violence, on the rise during the coronavirus pandemic, has spiked anew. Gun purchases have also risen.

In most of the country gun owners have little difficulty legally carrying their weapons in public. But that had been harder to do in New York and the handful of states with similar laws. New York’s law, in place since 1913, says that to carry a concealed handgun in public, a person applying for a license has to show “proper cause,” a specific need to carry the weapon.

The state had issued unrestricted licenses where a person could carry a gun anywhere and restricted licenses allowing a person to carry the weapon but just for specific purposes such as hunting and target shooting or to and from their place of business.

The challenge to the New York law was brought by the New York State Rifle & Pistol Association, which describes itself as the nation’s oldest firearms advocacy organization, and two men seeking an unrestricted ability to carry guns outside their homes.

Mortgage rates continue to climb, pricing more buyers out of the housing market

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Mortgage rates continue to climb as the Federal Reserve seeks to tame unwieldy inflation.

The 30-year fixed-rate mortgage averaged 5.81% in the week ending June 23, edging up from 5.78% the week before, according to Freddie Mac.

According to CNN, this time last year, rates averaged 3.02%, and the last time rates were this high was in the winter of 2008.

Housing already appears to be transitioning to a “post-pandemic new normal,” said George Ratiu, Realtor.com’s manager of economic research. Rents hit a record high for the 15th consecutive month, but the pace of growth is slowing, he said, adding that home price gains are also declining.

“Market prices will continue adjusting to a smaller pool of qualified buyers and higher financing costs,” he said in a statement. “The move from an overheated real estate market toward a more sustainable one will take some time. The upside is that eventually we should see a healthier environment with more options and better value for many buyers.”

“Fixed mortgage rates have increased by more than two full percentage points since the beginning of the year,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “The combination of rising rates and high home prices is the likely driver of recent declines in existing home sales. However, in reality, many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.”

Despite the jumps, mortgage rates remain well below historical highs notched during the past 40 years — notably the record 18.63% average rate in October 1981.

Still, the sharpness of current mortgage rate increases combined with the spike in borrowing costs will ultimately make consumers more cautious, said Abbey Omodunbi, assistant vice president and senior economist for The PNC Financial Services Group.

“I think we’re likely to see further increases in mortgage rates through the rest of the year,” Omodunbi said in an interview with CNN Business. “The Fed wants to see softening housing activity.”

The Federal Reserve does not set the interest rates borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track 10-year US Treasury bonds. But rates are indirectly impacted by the Fed’s actions on inflation. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and with it, mortgage rates.

During its policymaking meeting last week, the fed raised its benchmark interest rate by 75 basis points, the largest such increase in three decades. In public comments made since, including in testimony before Congress, Fed Chairman Jerome Powell said the central bank’s actions should help dampen demand in the nation’s housing market, which has been running white-hot.

Home prices surged during the past two years in part due to record-low mortgage rates, pandemic-related migration patterns, the influence of investment firms buying residential properties, and the Fed’s purchase of mortgage bonds.

Rents and home prices continue to rise at double-digit rates in many areas.

“Housing prices should stop going up at such remarkably rapid rates,” Powell said Wednesday in a hearing before the Senate Banking Committee. “Since the beginning of the pandemic, we’ve had a very, very hot … housing market all across the country. As demand for housing moderates…you should see prices stop going up.”

Still, the flip side of higher mortgage rates in a high-inflation environment and record home costs could ultimately price out millions more Americans from owning a home, according to Harvard University’s annual State of the Nation’s Housing Report released Wednesday.

A year ago, a buyer who put 20% down on a median-priced $390,000 home and financed the rest with a 30-year, fixed-rate mortgage at an average interest rate of 3.02% had a monthly mortgage payment of $1,673, according to numbers from Freddie Mac.

At today’s rate of 5.81%, the monthly mortgage payment on that same house would be $2,187, a difference of $514.

North Korea talks of new army duties suggest nuclear deployment

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According to AP, North Korea discussed assigning additional duties to front-line army units at a key military meeting, state media said Thursday, a move that analysts said indicates it plans to deploy battlefield nuclear weapons targeting South Korea along the rivals’ tense border.

While much international attention has focused on North Korea’s testing of intercontinental ballistic missiles potentially capable of reaching the U.S. mainland, it is also developing a variety of nuclear-capable short-range missiles that can target South Korea.

Won In-Choul, chairman of South Korea’s Joint Chiefs of Staff, held a video conference on Thursday with his American counterpart, Gen. Mark Milley, and said a North Korean ICBM test or nuclear test explosion could occur at any time, his office said in a statement. It said Milley responded that the U.S. commitment to the defense of South Korea remains “iron-clad.”

South Korean and U.S. officials have warned North Korea that it will face consequences if it goes ahead with a nuclear test. But divisions between the permanent members of the U.N. Security Council make prospects for additional international sanctions on North Korea unclear. Earlier this year, Russia and China vetoed U.S.-sponsored resolutions that would have increased sanctions, insisting that Washington should focus on reviving dialogue.

South Korean officials recently said that North Korea has completed preparations for its first test of a nuclear explosive device in five years, part of a possible effort to build warheads capable of being mounted on short-range missiles.

During an ongoing meeting of the Central Military Commission of North Korea’s ruling Workers’ Party, leader Kim Jong Un and other top military officers discussed on Wednesday “the work of additionally confirming the operation duties of the front-line units of the Korean People’s Army and modifying the operation plans,” according to the official Korean Central News Agency.

Kim also ordered steps to “enhance the operational capabilities of the front-line units,” KCNA said. A KCNA photo showed what appeared to be a large map of the Korean Peninsula’s eastern coast, including border sites, standing near the conference table.

Although there was no public mention of tactical nuclear weapons, “I can assess that the issues of forward-deploying tactical nuclear weapons and the modification of related operational plans and military organization reshuffles have been discussed in an in-depth manner” at the meeting, said Cheong Seong-Chang, a senior analyst at South Korea’s private Sejong Institute.

Cheong said North Korea’s push to deploy nuclear weapons at front-line units was expected since it said in April that its new tactical weapons would significantly boost the units’ attack capacity and the efficient operation of tactical nuclear weapons.

A KCNA report on April 17 on the test-launch of what it called a new type of tactical guided weapon said it has “great significance in drastically improving the firepower of the front-line long-range artillery units, enhancing the efficiency in the operation of (North Korea’s) tactical nukes and diversification of their firepower missions.”

Later in April, Kim said North Korea could preemptively use nuclear weapons if threatened, saying they would “never be confined to the single mission of war deterrent” in situations in which the country faces external threats to its “fundamental interests.” The possibility of North Korea having an escalatory nuclear doctrine could pose greater concern for South Korea, Japan and the United States.

North Korea has described some of its other short-range nuclear-capable missiles tested in recent years as tactical weapons, which experts say communicates a threat to proactively use them during conventional warfare to blunt the stronger conventional forces of South Korea and the United States.

Kim Jun-rak, a spokesperson for South Korea’s Joint Chiefs of Staff, told reporters Thursday that it is closely monitoring North Korean activities but didn’t elaborate. South Korea’s Unification Ministry, which overseas relations with North Korea, said the North will likely increase its military threats against South Korea, but did not elaborate.

Kim convened the Central Military Commission meeting earlier this week to confirm “crucial and urgent tasks” to expand the country’s military capabilities and implement key defense policies, state media said.

Cheong, the analyst, said North Korea is expected to conduct its seventh nuclear test after the meeting, noting that its third nuclear test in 2013 also came days after another Central Military Commission meeting.

This year, North Korea has test-launched about 30 missiles in what some experts call an attempt to expand its arsenal and increase its leverage in future negotiations with the United States to win sanctions relief and other concessions. The weapons tested include an ICBM. Analysts say North Korea needs to master missile reentry capabilities and other technologies to make a functioning long-range weapon.

There have been signs of an impending North Korean nuclear test for weeks. South Korean officials said the test has been delayed by North Korea’s continuing COVID-19 outbreak and opposition from China, its last major ally and biggest aid provider.

Uvalde school police chief placed on administrative leave as criticism grows 

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Pete Arredondo, the incident commander at Robb Elementary School when 19 children and two adults were killed last month, has been placed on administrative leave, Uvalde Independent School District Superintendent Hal Harrell announced Wednesday, according to Fox News.

Arredondo, in his only public comments since the shooting, told the Texas Tribune that he “didn’t issue any orders” and didn’t consider himself the incident commander. 

Lieutenant Mike Hernandez, a member of the Uvalde school district’s 6-person police force, will assume the duties of the school police chief, the superintendent said Wednesday. 

“From the beginning of this horrible event, I shared that the district would wait until the investigation was complete before making personnel decisions,” Harrell explained. “Today, I am still without details of the investigations being conducted by various agencies. Because of the lack of clarity that remains and the unknown timing of when I will receive the results of the investigations, I have made the decision to place Chief Arredondo on administrative leave effective on this date.”

Arredondo has been sharply criticized by everyone from Texas Department of Public Safety Director Steven McCraw to parents in the Uvalde community for his response to last month’s shooting. 

Arredondo entered Robb Elementary School just a few minutes after the gunman on May 24, but officers didn’t breach the classroom and take out the suspect for more than 70 minutes, a delay that McCraw called an “abject failure” this week.

“Three minutes after the suspect entered the west building, there was a sufficient number of armed officers wearing body armor to isolate, distract, and neutralize the subject,” McCraw told a special Texas Senate committee on Tuesday. 

“The only thing stopping a hallway of dedicated officers from entering Room 111, and 112, was the on-scene commander, who decided to place the lives of officers before the lives of children.”

A ballistic shield and several officers, including some with rifles, were inside the school within 20 minutes of the shooting, but Arredondo decided to hold back and wait for more tactical gear, firepower, and keys to open the door, which wasn’t necessary because the door was unlocked the whole time, according to McCraw. 

4th of July 2022: Events and celebrations in metro Atlanta

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In 2020, Atlanta’s main fireworks celebration in Centennial Olympic Park was canceled as COVID-19 cases jumped across Georgia and surrounding states. Officials have canceled fireworks shows in Buckhead, Marietta and Stone Mountain in efforts to reduce large crowds.

Here is a list of parades, events and celebrations happening in and around metro Atlanta for the 4th of July:

Look Up Atlanta:

  • WHAT: The southeast’s largest fireworks show
  • WHERE: Centennial Olympic Park
  • WHEN: July 3

Rome July 4th Celebration

  • WHAT: Rome 2022 Fireworks Extravaganza
  • WHERE: 363 Riverside Pkwy NE in Rome
  • WHEN: July 4: Park opens at noon with vendors, live music and entertainment. Fireworks begin at approximately 9:50 p.m.

Acworth July 4th Celebrations

  • WHAT: July 4th Concert & Fireworks
  • WHERE: 4425 Beach St in Acworth
  • WHEN: July 4: Live music and fireworks. Live music will start at 5:30 p.m. Fireworks will begin at approximately 9:30 p.m. (subject to change depending on weather).

City of Marietta’s Fourth in the Park

  • WHAT: Celebration that includes parade, live concerts, museum tours, arts and crafts show, food and a carnival
  • WHERE: 99 S Park Square NE
  • WHEN: July 4 at 10 a.m.

Alpharetta July 4th Celebration

  • WHAT: The 4th of July Celebration at Willis Park featuring fun, activities and fireworks
  • WHERE: 11925 Willis Road in Alpharetta
  • WHEN: 7:30 – 9:30 p.m. July 4

Roswell Fireworks Extravaganza

  • WHAT: The annual July 4th Fireworks Extravaganza that will also include live music, food, and family-fun activities
  • WHERE: 10495 Woodstock Road
  • WHEN: July 4: Live music begins at 6 p.m., fireworks begin at approximately 9:30 p.m,

Stone Mountain July 4th Celebrations

  • WHAT: Fantastic Fourth Celebration
  • WHERE: 1000 Robert E. Lee Blvd. in Stone Mountain Georgia
  • WHEN: July 1-5: Live entertainment, laser show presented by the Georgia Office of Highway Safety followed by a fireworks finale each night of the celebration!

Yellowstone National Park reopening after floods; Recovery could take years

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Yellowstone National Park is partially reopening after record flooding that damaged homes and wiped out infrastructure. 

It could take years to rebuild Yellowstone, based on other national park disasters, and cost more than a billion dollars. 

Yellowstone’s recovery comes as more travelers plan to visit America’s national parks

The park’s managers are opening three of the park’s five entrances, but there is a system in place to ensure that visitor numbers remain low. 

Cars with even-numbered last digits on their license plates can enter on even days and those with odd-numbered last numbers can come on odd days.

However, groups of visitors traveling together in different cars are exempt from the license plate system, as well as those with reservations at campgrounds and hotels.

Officials are still surveying the destruction from the flooding, but work is ongoing to restore and repair roads. 

There are still plenty of options for people who made reservations at Yellowstone, including spending time in West Yellowstone. 

There are several lakes, including Hebgen Lake and Earthquake Lake. 

In Wyoming, lies Shoshone National Forest – although it was also partially affected by the flooding

South China floods force the evacuation of tens of thousands of people

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According to AP, major flooding has forced the evacuation of tens of thousands of people in southern China, with more rain expected.

Parts of the manufacturing hub of Guangdong suspended classes, office work and public transport amid rising waters and the threat of landslides.

In the neighboring province of Jiangxi, almost 500,000 people have seen damage to their homes and their lives uprooted.

Roughly the same number have been affected in Guangdong, largely in the cities of Shaoguan, Heyuan and Meizhou.

The heavy rainfall has collapsed roads in some parts of cities and swept away houses, cars and crops, and more rain is forecasted for coming days. Chinese authorities on Sunday issued the year’s first red alert, the most severe warning, for possible mountain torrents.

In Zhejiang province north of Guangdong, rescue crews in inflatable boats brought out residents trapped in their homes in inundated villages.

Further north, storm warnings were issued for much of the eastern provinces, including the capital Beijing, while reservoirs in the central province of Henan were at flood level and were releasing torrents of water downstream.

China regularly experiences flooding during the summer months, most frequently in central and southern areas that tend to receive the most rainfall. This year’s flooding is the worst in decades in some areas and comes on top of strict COVID-19 regulations that have strangled travel, employment and ordinary life in much of the country.

China’s worst floods in recent years were in 1998, when more than 2,000 people died and almost 3 million homes were destroyed, mostly along the Yangtze, China’s mightiest river.

The government has invested heavily in flood control and hydroelectric projects such as the massive Three Gorges Dam on the Yangtze.

Globally, more intense tropical storms are on the rise as a result of climate change, leading to increased flooding that threatens lives, crops and groundwater.

Musk “Tesla’s new car factories ‘losing billions of dollars'”

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Tesla Inc’s (TSLA.O) new car factories in Texas and Berlin are “losing billions of dollars” as they struggle to increase production because of a shortage of batteries and China port issues, Chief Executive Elon Musk said in an interview published on Wednesday, according to Reuters.

“Both Berlin and Austin factories are gigantic money furnaces right now. Okay? It’s really like a giant roaring sound, which is the sound of money on fire,” Musk said in an interview with Tesla Owners of Silicon Valley, an official Tesla-recognized club, in Austin, Texas, on May 31.

Tesla earlier this year started production at the factories in Berlin and Texas, both of which are critical to the growth ambitions of the top electric car maker.

Musk said he expected Tesla would start production of its Cybertruck electric pickup trucks, which has been delayed, in mid-2023.

The club divided its interview with Musk into three parts, the last of which was released on Wednesday.

Musk said Tesla’s Texas factory produces a “tiny” number of cars because of challenges in boosting production of its new “4680” batteries and as tools to make its conventional 2170 batteries are “stuck in port in China.” “This is all going to get fixed real fast, but it requires a lot of attention,” he said.

He said its Berlin factory is in a “slightly better position” because it started with using the traditional 2170 batteries for cars built there.

He said the COVID-19-related shutdowns in Shanghai “were very, very difficult.” The shutdown affected car production not only at Tesla’s Shanghai factory, but also at its California plant, which uses some vehicle parts made in China, he said. 

Tesla plans to suspend most production at its Shanghai plant in the first two weeks of July to work on an upgrade of the site to boost output, according to an internal memo seen by Reuters.

“The past two years have been an absolute nightmare of supply chain interruptions, one thing after another, and we’re not out of it yet,” Musk said.

Tesla’s overwhelming concern, he said, is “How do we keep the factories operating so we can pay people and not go bankrupt?”

Musk said early this month he had a “super bad feeling” about the economy and that the company needed to cut staff by about 10% and “pause all hiring worldwide.” Earlier this week, he said a 10% cut in salaried staff at Tesla will occur over three months.

A pilot shortage has prompted American Airlines to end services to 4 airports

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A pilot shortage has prompted American Airlines to end services beginning in September to some airports in Iowa, New York and Ohio, the company has announced.

The services, according to a company statement to NBC News on Wednesday, will cease Sept. 7 at the Dubuque Regional Airport in Iowa; the Long Island MacArthur Airport and the Ithaca Tompkins International Airport, which are in New York; and the Eugene F. Kranz Toledo Express Airport in Ohio.

More than 1,300 Southwest Airlines pilots stood on a picket line Tuesday in Dallas, voicing concerns about what they say are unfair working conditions and inadequate pay, according to the pilots union.

“The Pilots of Southwest have been in contract negotiations with the company for more two years with no meaningful movement toward a new contract,” the union said in a statement to NBC News, adding that “pilot fatigue rates have reached an all-time high.”

Pilots from across the commercial airline industry have called attention to chronic staffing shortages that have forced carriers to either delay or cancel flights.

The “regional pilot shortage affecting the airline industry” was cited in an American Airlines statement as the reason prompting the “difficult decision” to cut ties with the four airports.

“We’re extremely grateful for the care and service our team members provided to our customers in Dubuque, Islip, Ithaca and Toledo, and are working closely with them during this time. We’ll proactively reach out to customers scheduled to travel after this date to offer alternate arrangements,” the airline statement said.

American Airlines currently flies twice a day from the four affected airports, the company said.

In a statement from the Toledo-Lucas County Port Authority on behalf of the Toledo airport, the agency said:

“We are incredibly disappointed to learn American Airlines’ decision to cancel service to Chicago O’Hare International Airport (ORD) out of Eugene F. Kranz Toledo Express Airport (TOL) beginning September 7, 2022. Please note, this decision was made solely by the airline, primarily due to a shortage of regional pilots. Unfortunately, we understand this is a current continued trend in the aviation industry. The Port Authority continues to meet with various airline representatives multiple times a year in an effort to increase our air service out of TOL.”

A spokesperson for MacArthur Airport said in a statement that officials hope to one day resume a partnership with American Airlines and”are hopeful that this service adjustment will not be permanent.”

Representatives with the two other affected airports were not immediately reached Wednesday for comment.

Mark Zuckerberg expects a billion people in the metaverse spending hundreds of dollars each

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Meta Platforms CEO Mark Zuckerberg told CNBC’s Jim Cramer on Wednesday that the metaverse could be a considerable part of the social network operator’s business in the second half of the decade, reported by CNBC.

“We hope to basically get to around a billion people in the metaverse doing hundreds of dollars of commerce, each buying digital goods, digital content, different things to express themselves, so whether that’s clothing for their avatar or different digital goods for their virtual home or things to decorate their virtual conference room, utilities to be able to be more productive in virtual and augmented reality and across the metaverse overall,” he said.

Investors have cut the company’s market capitalization in half this year as growth has slowed and the number of its daily active users declined sequentially for the first time between the last two quarters. Zuckerberg has been increasingly directing the company toward what he views as the next generation of content, a virtual world where people can buy and sell digital goods for avatars who can communicate with one another. The company’s ticker symbol changed from FB, a relic of its history as a pure social media provider, to META earlier this month.

But the company’s investment in augmented reality and virtual reality dates back to 2014, when it paid $2 billion for headset maker Oculus VR. Shipments of headsets have failed to outnumber shipments of PCs or smartphones. Zuckerberg expressed optimism about the performance of its current-generation Meta Quest 2, which starts at $299.

“Quest 2 has been a hit,” Zuckerberg told the “Mad Money” host.

“I’ve been really happy with how that’s gone. It has exceeded my expectations. But I still think it’s going to take a while for it to get to the scale of several hundreds of millions or even billions of people in the metaverse, just because things take some time to get there. So that’s the north star. I think we will get there. But, you know, the other services that we run are at a somewhat larger scale already today.”

Experiences in the metaverse can be more immersive than text, photos or videos, which are pervasive on Meta’s Facebook and Instagram, and so it will be a big theme for Meta over the next decade, Zuckerberg said.

Zuckerberg met with Cramer in the metaverse. The Facebook co-founder said such experiences can foster a sense of being together, even if people are physically on the other side of the country. He said it’s possible to make eye contact, which isn’t guaranteed on video calls, and use spatial audio that allow for quiet side conversations.

The technology “basically adds up to making it deliver this realistic sense of presence,” he said.

“You know, our playbook over time has been build services, try to serve as many people as possible — you know, get our services to a billion, two billion, three billion people, and then we basically scale the monetization after that,” Zuckerberg said. “And we’ve done that with Facebook and Instagram. WhatsApp is really going to be the next chapter, with business messaging and commerce being a big thing there.”

In addition to its metaverse spending, Meta is investing heavily in the development of artificial intelligence, which can bolster advertising — the source of around 97% of revenue — and the company’s existing applications, Zuckerberg said.

“We’re basically shifting from having most of the content that you see in Facebook and Instagram come from your friend or follow graph, to now, you know, over time, having more and more of that content just come from AI recommendations,” Zuckerberg said. “And as the AI recommendations get better, you get access to, you know, not just the content from the people who you follow but the whole universe of content that’s out there.”

It’s a concept that TikTok, owned by China’s ByteDance, used to propel itself to a billion monthly active users. Meta sought to respond to the rapid growth with the introduction of its Reels feature of Instagram in 2020. Reels makes up over one-fifth of the time people spend on Instagram, Zuckerberg told analysts on Meta’s first-quarter earnings call in April. Now he expects AI enhancements to make Reels more compelling to Instagram’s users.

“Our AI system can choose based on what it knows about you and what you personally are going to be interested in and learn about, what you want to see,” he said. “So as we get better at that, you know, our engineers are shipping improvements to the models every week. We check something and, you know, relevance goes up by a few percent. And then we repeat and do that the next week. And, you know, this is just a huge part of what I’ve always focused on in running this company, is getting the velocity to be very quick, so we can keep on making fast improvements to this.”

Meta is also investing in hardware for AI, alongside other large technology companies, such as Alphabet and Microsoft.

“We just brought online the AI research supercluster, which, you know, we believe is going to be the fastest AI supercomputer when it’s fully built out later this year, so that our researchers can build new and bigger models to both make the ranking and recommendations across our social media services and ads better.”

The company will slow its investment in AI in the event of a recession, Zuckerberg said.

Bringing that to customers over the next several years will require Meta to release a stack of hardware, software and experiences.

“We are at this point, you know, a company that can afford to make some big long-term research investments, and this is a big focus,” he said.

He expects the economy around the metaverse to be massive, he said.

Meta Platforms had 3.64 billion monthly active people across its family of applications in the first quarter, up 6% year over year. WhatsApp reached 2 billion users in 2020, and it’s also an area where Zuckerberg sees the potential for growth.