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Meta Loses $200 Billion in Market Cap After AI Investment Jitters
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Meta’s 13% drop erased $200 billion in value as heavy AI investments overshadowed stable ad revenues and raised cost-efficiency concerns.
Following its quarterly earnings release, Meta shares plunged 13% amid investor unease about escalating AI-related costs. Revenue from its core apps remained solid, yet analysts questioned whether massive infrastructure spending would yield near-term returns. The company emphasized ongoing product integration of Meta AI across messaging and social platforms to enhance engagement. Despite the pullback, executives reaffirmed confidence in long-run profitability. Market reaction highlighted deep skepticism about balancing innovation and fiscal prudence as capital expenditure hits record highs.