Meta Stock Plunges Amid AI Spending Plan

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The Facts

  • Tech platform Meta's shares dropped nearly 19% Wednesday — wiping out around $200B in market value — after it increased its 2024 cost forecast to $35 -40B because of its ventures into artificial intelligence (AI) and its metaverse.

  • First quarter results for the Facebook, WhatsApp, and Instagram parent company showed its future spending rising from its earlier $30-37B range.

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The Spin

Narrative A

Overall, Meta stock has surged this year. There may be some volatility caused by Wednesday's update, but that's the cost of doing business. With ad sales expected to continue growing and Zuckerberg still at the helm, Meta has a bright future.

Investor's Business Daily

Narrative B

Zuckerberg and Meta's responsibility is to the shareholders, who aren't totally trustful of the near future and investment in AI. The company's lower-than-expected revenue and its announced increased spending on AI have Meta on shaky ground that may require a course correction.

New York Times

Metaculus Prediction

Go Deeper

What is Artificial Intelligence?
What is Artificial Intelligence?
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