Meta announced an increase in investments in the field of artificial intelligence, which led to a 15% drop in the company's stock and a decrease in its market value of approximately $185 billion.
Meta's AI Expectations
Financial Forecasts
Tech giant Meta has published a financial report outlining plans to significantly increase spending on artificial intelligence development. Capital investment is expected to reach between $35 billion and $40 billion, exceeding previous estimates of $30 billion to $37 billion. The decision is driven by the company's desire to strengthen its position in the field of AI and improve recommendation algorithms.
Long-Term Prospects
Meta founder Mark Zuckerberg emphasized the long-term benefits of large-scale investments in artificial intelligence, although he acknowledged that it could take years to turn a profit. He is convinced of the potential of AI solutions, citing the success of the artificial intelligence chatbot and the Ray-Ban smart glasses with an AI assistant.
Impact on Financial Indicators
Despite a successful first quarter with revenue of $36.5 billion, sales forecasts for the second quarter ($36.5-39 billion) turned out to be lower than analysts' expectations. That, along with the prospect of rising AI spending, caused Meta's stock to plummet 15% during trading, shaving about $185 billion off the company's market value.
Glossary
- Meta is an American technology company that owns social networks Facebook, Instagram, WhatsApp and other products.
- Artificial intelligence (AI) is a branch of computer science that deals with the development of intelligent computer systems and programs.
- Mark Zuckerberg is the co-founder and CEO of Meta.
- Ray-Ban is a well-known brand of sunglasses owned by the Italian company Luxottica.
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Discussion of the topic – Meta publishes plans to increase investment in artificial intelligence - shares fall 15%
Meta (Facebook) announced plans to increase spending on artificial intelligence development, which led to a sharp drop in shares by 15% and a reduction of $185 billion in market value.
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Oksana
The situation with the drop in Meta shares is actually strange 🤔 It would seem that investment in AI should raise their market value, because this is the trend of the future. But perhaps investors fear that big investments now will have a distant return.
Dmytro
I'm glad that Meta is actively developing artificial intelligence. Their strategy looks correct - improvement of recommendation algorithms allowed to increase the number of users and advertising revenue 💰 They are betting on a promising industry.
Günther
Tja, das ist wirklich eine heikle Situation für Meta. Einerseits ist KI einveitet die Zukunft, aber die Investments sind enorm hoch. Perhaps the market is simply not yet ready for so many innovations at one time? 🤷♂️ Es wird spannend sein, wie sich das alles entwicktelt.
Myroslava
In my opinion, Meta is making the right move by investing in artificial intelligence. This is a really promising industry that will change the future of technology 🤖 Of course, the big costs are raising doubts among investors now, but in the long run, it can bring huge profits to the company.
Stanisław
Nie dziwię się Meta, że investują w sztuczną inteligenją. It's the future and those who don't follow this trend will be left behind. Although in fact, wysokie kosto zawsze budzą niepokój wrods inwestorów. But I believe that if Meta invests well, it will pay off 💸
Grzegorz
Ech, these young companies go all out 🙄 They think that artificial intelligence is some kind of wonderful thing, and then they lose it, and the investors go away. And finally, it is necessary to wait for a return on such investments. Ale cóż, sami sobie zgotowali ten los 😒
Pierre
Je pense que l'investissement de Meta dans l'IA est une décision judiqueuse. Bien que costeux à short terme, cela leur permettre de rester à l'avant-garde de l'innovation. 💡 And their recent success with ChatGPT proves that they have the potential to succeed in this domain.
Ivanna
I understand the concerns of investors, but I am sure that Meta made the right decision 💪 They were one of the first to take artificial intelligence seriously, and this will help them beat out their competitors. Initially, the costs will be high, but later they will gain a huge advantage in the market 🚀