04-25-2024, 11:37 AM

Meta stock plunges after Zuckerberg touts money-losing projects

Meta shares fell 19% as CEO Mark Zuckerberg said the company's preferred initiatives might cost tens of billions of euros.

Zuckerberg's revelation that AI and Metaverse ventures might spend €40 billion in 2024 lowered the company's valuation by approximately €200 billion.

Despite being available through Facebook headsets and glasses, the metaverse has not won over consumers or businesses.

Facebook's parent business reported a profit increase, higher-than-expected spending, and a forecasted reduction in second-quarter advertising revenue, causing a sell-off. Due to investor concerns about rising expenses, Meta's stock plummeted from €493 to €407 after hours after rising 116% over the past year and 45% year-to-date.

Zuckerberg advised investors to be patient while Meta explores AI, knowing that new products can create stock volatility.

"Developing leading AI is more difficult than adding other features to our apps and will likely take years," he said.

Zuckerberg launched the latest version of Meta AI, a smart assistant on Instagram, WhatsApp, Messenger, and Facebook, in over a dozen English-speaking countries, including Australia, Canada, Singapore, and the US, last week.

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