Meta plummets almost 16% after announcing “aggressive investment” in artificial intelligence

Meta plummets almost 16% after announcing “aggressive investment” in artificial intelligence

Meta Actions plummet this Thursday before the market opens, as Facebook owner’s plans to “iinvest aggressively“In artificial intelligence they scare investors.

Thus, the share price falls around 16%, threatening to erase more than $160 billion from its market value, as investors looked beyond the strong first-quarter earnings to focus on the company’s enormous costs of building an AI future.

The firm now competes directly with Microsoft and Google to unlock the enormous potential of artificial intelligence. While the gains could be huge, Meta’s most recent gains underscored that building the best tools is expensive and will take time.

Meta (META), which also owns WhatsApp and Instagram, said Wednesday that first-quarter profits more than doubled compared to a year earlier, while revenue rose 27%. But an increase of up to $5 billion in projected investments in artificial intelligence, and the likelihood of further increases in the years ahead, made shareholders uneasy.

Goal: what data the market analyzes

Meta said full-year capital spending would be in the range of $35-40 billion, up from previous guidance of $30-37 billion. as it continues to accelerate investments in infrastructure to support artificial intelligence.

In a call with investors, the CEO, mark

zuckerberg meta.jpg

The new Meta tool.

Metaverse247

, He focused most of his comments on artificial intelligence. He said that Meta wants to be “the leading artificial intelligence company in the world” and “should invest significantly more in the coming years to build even more advanced models.”

Goal would increase spending “significantly before getting much revenue from some of these new products“On the other hand, once our new AI services reach scale, we have a strong track record of effective monetization,” he added.

Weaker-than-expected guidance for the current quarter could also be weighing on the stock. Meta has forecast revenue of $36.5-39 billion, versus analyst expectations of $38.2 billion.

“A slightly lower-than-anticipated revenue forecast contributed to investor concerns about the company’s future performance,” said Stephen Innes, managing partner at SPI Asset Management.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts

Poor demand for the Breop

Poor demand for the Breop

The monetary authority awarded only US $ 9 million in the third tender of the fourth series of these bonds that seek to “more flexible