Meta share price

Meta's Rollercoaster Ride: AI Spendings and Share Price Plunge

Meta's AI spending plans lead to a 10% share price slump. Investors are questioning the value as Meta's stock continues to fluctuate.

Meta, the parent company of Facebook and WhatsApp, recently faced a significant drop in its share price due to higher-than-expected spending on AI. This decision caused investors to react poorly, resulting in a 10% decrease in the Meta share price. Despite reporting a remarkable 117% growth in earnings per share for Q1, the stock's value has been under scrutiny.

In a surprising turn of events, Meta's shares plummeted by 17% as concerns grew over the company's continuous investment in AI technology. Analysts have started to question the sustainability of Meta's AI ventures, leading to further skepticism among investors.

The volatility continued as Meta experienced a 13% drop in pre-market trading, even after posting strong quarterly results that surpassed analysts' expectations. The company's profit doubled in Q1, driven by increased advertising revenue, but the revenue guidance for the following quarter failed to impress the market.

As Meta struggles to reassure investors, its stock price fell by more than 16% following a lackluster revenue forecast for the second quarter. The company's financial outlook remains uncertain, with revenue projections ranging between $36.5 billion and $39 billion, leaving investors wary of Meta's future performance.