Meta reports surge in profit but company's increased spends spook investors
by ETtech.com
ETtech.com— Social media giant Meta reported a surge in profit with the Facebook and Instagram parent seeing its first-quarter profit more than double, boosted by higher advertising revenue and a 6% increase in the average price of ads on its platforms, to touch $12.37 billion from $5.71 billion during the same period last year.Revenue, too, rose 27% to $36.46 billion from $28.65 billion. However, despite beating analyst estimates the stock slumped over 15% in extended trade after the company forecasted...
Zero Hedge—Meta Shares Are Crashing After Zuck Spooks Investors Over "Significant" AI Spend. Meta Shares Are Crashing After Zuck Spooks Investors Over "Significant" AI Spend Update (1715ET): During the earnings call, CEO Mark Zuckerberg said that his commitment to Meta building the best AI models out there leads him to believe that “we should invest significantly more in the coming years." And the return may take a while “It’s worth calling that out that we’ve historically seen a lot of volatility in our stock during this phase of our product playbook, where we’re...
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The Guardian—Meta value falls $190bn as investors react to plan to increase spending on AI. Shares slumped 15% after Mark Zuckerberg said AI spending would have to grow before Meta could make much revenue from productsBusiness live – latest updatesShares in Meta slumped 15% when Wall Street opened on Thursday, wiping about $190bn off the value of the Facebook and Instagram parent company, as investors reacted to a pledge to ramp up spending on artificial intelligence.Mark Zuckerberg, Meta’s founder and chief executive, said on a conference call on Wednesday that spending on the...