Apr 25, 06:55 AM

Meta Shares Plunge 20%, $240B Wiped Out, 13% Stock Drop After AI Spend Surge

Meta Platforms Inc. experienced a significant stock price drop, with shares falling as much as 20% and erasing approximately $240 billion from its market capitalization, following its latest earnings report and future financial forecasts. The company announced increased spending on artificial intelligence (AI) and provided a revenue forecast for the second quarter that fell short of expectations, projecting revenues between $36.5 billion and $39 billion against an estimated $38.24 billion. Despite these challenges, Meta reported a 27% increase in revenue to $36.46 billion for the quarter, and profits more than doubled, driven by its ongoing push into AI development. Additionally, Meta's stock sank by 13%, and the company revealed it had lost 10% of its employees over the past year.

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Written with ChatGPT (GPT-4).