Meta drops 15% on weak outlook and high AI and metaverse spending
Meta (META) shares dropped 15% in after-hours trading after the firm said it will “aggressively” ramp up spending in artificial intelligence spending while its metaverse division will continue to run at a loss — amid a weak revenue outlook.
The giant said in its April 24 first quarter 2024 results it expected expenses to rise to a range between $96 billion to $99 billion — up from $94 billion to $99 billion due to “higher infrastructure and legal costs.”
It also bumped full-year 2024 capital expenditures to a top end of $40 billion from its prior $37 billion as it would “invest aggressively to support our ambitious AI research and product development.”
Its metaverse building Reality Labs lost $3.85 billion in Q1 — down from nearly $4 billion it lost in Q1 2023 — but Meta said expected these losses to increase year-on-year to bankroll the division’s product development.
Related: Mark Zuckerberg says Meta wearables that read brain signals are coming soon
Meta shares slid 15.4% after-hours on April 24 to $417.22 following it closing the day down 0.5% at $493.50, according to Google Finance.
Meta slid to an after-hours low of $402.98 before slightly recovering. Source: Google FinanceMeta is, however, still up 42.5% year-to-date after hitting an all-time high of $527.34 earlier this month on April 5.
AI Eye: How to get better crypto predictions from ChatGPT, Humane AI pin slammed
This is a developing story, and further information will be added as it becomes available.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Almost 90% ot Airdrop Tokens Crash Within Three Months
Announcement on Resumption of FTM Network Deposit and Withdrawal Services
We are pleased to announce that FTM network deposit and withdrawal services are available again on our platform. We apologize for any inconvenience caused during the suspension period! Join Bitget, the World's Leading Crypto Exchange and Web 3 Company Sign up on Bitget now >>> Follow us on Twitter
$10 – $20 RIO ATH Price Possibility Comes Into Play as Bullish Inverted Head and Shoulders Pattern Forms
$66,000 BTC Price Nears as Bulls Take Full Control, Bitcoin Races Towards Next $68,000 Crucial Resistance Level