By Katie Paul and Yuvraj Malik (Reuters) -Meta Platforms disappointed investors on Wednesday with forecasts of higher expenses and lighter-than-expected revenue, knocking nearly $200 billion off its stock market value and raising fears the surging cost of AI is outpacing its benefits.
Key Takeaways Meta shares tumbled over 10% Thursday, a day after the company said it expects higher expenses to invest in artificial intelligence (AI), but analysts suggested it could help Meta become an long-term AI leader.
Related: Analysts reset Facebook-parent Meta stock price targets amid post-earnings plunge CAROLINE WOODS: I’m Caroline Woods reporting from the New York Stock Exchange - here’s what we’re watching on TheStreet today.
There are several ways to build a massive business here,” Meta CEO Mark Zuckerberg told investors Wednesday in an attempt to calm investors over the company’s AI push, which he said could take years to pay off.
Meta's stock price fell 15% when markets opened on Thursday, wiping $190 billion off its market value. This was in reaction to Meta's pledge to increase spending on artificial intelligence
Meta ’s stock price sank by over 16 per cent on Wednesday after the tech giant’s chief Mark Zuckerberg said it could take the company years to profit from its generative artificial intelligence projects.
Meta plunged nearly 15% Thursday after the Facebook-parent forecast higher expenses over its plans to “invest aggressively” in artificial intelligence. The Mark Zuckerberg-led tech giant’s stock was down 13.
Meta' aggressive push into AI development spooked Wall Street on Wednesday, despite the tech company reporting first quarter income that soared by 117% on revenues up 27% to $36.46 billion, both of which beat analysts' consensus estimates.