- 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. Daily Mail (LR: 5 CP: 5)
- First quarter results for the Facebook, WhatsApp, and Instagram parent company showed its future spending rising from its earlier $30-37B range. Sky News
- During an update, Meta Chief Executive Officer Mark Zuckerberg highlighted a $3B rise in AI spending alone, expressing confidence the company could become the globe's leading AI firm. Australian Financial Review
- While Meta reportedly beat market expectations by earning $4.71 a share on revenue of $36.5B, it ended up disappointing investors — including on its sales outlook. MarketWatch
- Meta has reportedly been enhancing its ad-buying products by integrating AI tools to increase revenue growth. It's also integrating AI into its social media, including chat assistants. BBC News
- Meta's shares have risen around 40% this year, partly due to extensive cost-cutting measures. Meta's ChatGPT rival, Llama, was recently unveiled to select users. Australian Financial Review
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 (LR: 2 CP: 5)
Nerd narrative:
- There's a 20% chance that Meta will report 1B active users by Dec. 31, 2031, according to the Metaculus prediction community.
METACULUS (LR: 3 CP: 3)