Meta’s stock plunges on ‘aggressive’ AI spending plans

Meta’s stock plunges on ‘aggressive’ AI spending plans

Apr 25,2024
London CNN  — 

Shares in Meta plunged in premarket trading Thursday as the company’s plans to “invest aggressively” in artificial intelligence spooked investors.

Meta’s stock was down around 13%, threatening to wipe almost $163 billion off its market value, as investors looked beyond bumper first-quarter earnings to focus on the huge costs to the company of building an AI future.

Meta, which owns Facebook, WhatsApp and Instagram, said Wednesday that first-quarter profit more than doubled year-on-year, while revenue was up 27%. But an increase of as much as $5 billion in projected AI Investments — and the likelihood of further increases in subsequent years — made shareholders uneasy.

“The language around spending plans has become bolder once more, and this could be what’s spooking markets,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, wrote in a note Thursday.

“For all Meta’s bold AI plans, it can’t afford to take its eye off the nucleus of the business — its core advertising activities… Meta’s resources are vast but not infinite, and its digital advertising market share needs defending at all costs,” she added.

Meta said full-year capital expenditure would be in the range of $35-40 billion — up from previous guidance of $30-37 billion — as it continues to accelerate infrastructure Investments to support AI.

“We expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts,” the company added in a statement.

Maybe You Like

Eni looks to draw investors with clean division between projects

The aim of the move is to attract more investment by allowing both fossil fuel and renewable energy investors to invest solely in their preferred projects, without any crossover of funds. ADVERTISEMENTItalian energy giant Eni is considering...

Uzbekistan’s Investment Surge: Reforms Drive Major International Interest

In recent years, Uzbekistan has experienced a surge in foreign investment, driven by extensive government reforms initiated in 2017. The 3rd Tashkent International Investment Forum showcased the country's appeal to investors,...

For US renters, the chance of owning a home is going from bad to worse

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link. New York CNN —...

Latest Added Hyip programs

Best Magic (best-magic.sbs)
Added: May 21,2024
(40)
ECLIPCITYGLOBAL.LTD (eclipcityglobal.ltd)
Added: May 21,2024
(31)
Fdil Investments (fdil.top)
Added: May 21,2024
(95)
celerrio.com (celerrio.com)
Added: May 20,2024
(85)
Idce Ltd (idce-ltd.com)
Added: May 20,2024
(133)
BitcoinFan (bitcoinfan.biz)
Added: May 20,2024
(100)
mwcgold.cfd (mwcgold.cfd)
Added: May 20,2024
(92)
Purefund (purefund.net)
Added: May 20,2024
(121)