Meta’s shares dropped 15% in after-hours trading following announcements in April of plans for significant investment in AI, alongside a weaker revenue outlook and continued losses in its metaverse division, Reality Labs. The company anticipates its expenses will soar to between $96 billion and $99 billion for the fiscal year, attributing the increase to higher infrastructure and legal costs, and it is also raising its capital expenditure forecast to $40 billion to fund AI research and product development. Despite a 15.4% decline in stock price after these revelations and closing the trading day down, Meta’s stock has risen 42.5% year-to-date, hitting an all-time high earlier in the month.
Meta Faces Tough Market Response as AI Investments Surge and Metaverse Losses Continue
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
