ANDshares of the American Internet company Meta Platforms weakened sharply on Thursday due to concerns about high expenses for the development of activities in the field of artificial intelligence (AI). The drop in the share price was not even affected by the company’s economic results for the first quarter. The company Meta operates, for example, the social networks Facebook and Instagram, as well as the communication platform WhatsApp.
Just before 18:00 EST, Meta’s shares lost roughly 13 percent. The market value of the company thus showed a decrease of 170 billion dollars (thousand trillion K) and fell below 1.1 trillion dollars (26 billion K). The shares of other large technology companies joined the decline. Shares of the software company Microsoft, for example, lost ten percent.
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f the company Meta, Mark Zuckerberg, after announcing the quarterly results, said that the company will significantly increase costs in five years, rather than generate new revenues for some of its AI products. This raised concerns among investors that Zuckerberg would embark on another costly adventure at a time when Meta was facing widespread losses in the field of virtual reality, Reuters wrote.
“The beginning of the year was good,” Mark Zuckerberg, the founder of the af company, wrote as a result. “New versionTargetAI with (large language model) Llama 3 is the next step to build the world’s leading artificial intelligence. We will see healthy growth in all our applications and continue to make steady progress in building metaversions as well,” he added.
Targetupdates its ad buying products with AI tools and short video formats to drive growth in demand. The business is deploying AI features such as a chat assistant to increase engagement on its social networks.
The company estimates that the revenues of its chapters will range between 35 and 40 billion dollars this year. In the previous forecast, it stated 30 and 37 billion dollars. The company also adjusted the forecast for total revenue to 96 and 99 billion dollars from the original 94 and 99 billion dollars.
“Investors have caught up with the chapter’s marriage,” said analysts at Baird Equity. They also drew attention to Meta’s poor insight into the type of quarters. Meta announced after the end of its trading on the stock exchange that in the first quarter it more than doubled its profit to 12.4 billion dollars from 5.7 billion dollars a year ago. Its revenue in the first quarter increased by 27 percent to 36.5 billion dollars.
