Meta shares plunged as much as 15% in premarket trading, dragging US futures lower.
Investors weren’t convinced by Mark Zuckerberg’s plan to keep spending tens of billions on AI.
Meta also posted lackluster revenue guidance as part of its first-quarter earnings report.
Meta stock plunged in premarket trading on Thursday as investors fretted that Mark Zuckerberg’s artificial intelligence push will send costs skyrocketing.
Shares fell as much as 15% and were still 13% lower at just over $430 shortly after 5 a.m. ET in a selloff that will wipe about $160 billion off Meta’s value if it holds up until the opening bell.
The Meta stock plunge Reaction rippled through the broader technology sector, sparking discussions about the broader implications of the company’s pivot towards artificial intelligence.
The losses came after Meta reported its earnings for the first three months of the year on Wednesday.
Its profits of $4.71 per share and revenue of $36.5 billion beat analysts polled by Refinitiv had expected, but lackluster guidance took some of the shine off those results.
Meta expects to make between $36.5 billion and $39 billion in revenue in the current quarter. The midpoint would fall short of the $38.3 billion figure that analysts had been forecasting.
Despite the initial shock of the Meta stock plunge Reaction, some investors remained cautiously optimistic about the company’s long-term prospects. They pointed to Meta’s track record of innovation and its strong position in the tech industry as reasons for confidence.
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