Meta’s shares, the US technology giant, have plummeted in after-hours trading in the US, despite better-than-expected earnings.
The owner of Facebook and Instagram said that expenses would be higher this year as they invest heavily in artificial intelligence (AI). Their shares fell more than 15% after stating that they expected to spend billions of dollars more than previously anticipated by 2024.
Meta has been updating its advertising buying products with AI tools to drive profit growth. And it has also introduced more AI features in its social media platforms, such as chatbots.
Stocks have plummeted despite the great profits of 2024
The company said that it now expects to spend between 35,000 and 40,000 million dollars in 2024, compared to a previous prediction of between 30,000 and 37,000 million dollars.
The curious thing is that their stocks fell despite surpassing profit expectations. First quarter revenues increased by 27%, reaching $36.46 billion, while analysts were expecting profits of $36.16 billion.
By the way, The President of the United States, Joe Biden, has enacted a law that grants the Chinese owner of the platform, ByteDance, nine months to sell it or it will be blocked in the United States.
Last year, Irish authorities fined Meta 1.2 billion euros for misuse of user data by transferring it between Europe and the United States.
