Meta drops 15% on weak outlook and high AI and metaverse spending

Jesse Coghlan29 minutes agoMeta drops 15% on weak outlook and high AI and metaverse spendingMeta shares dipped after a disappointing Q2 revenue outlook and plans to spend nearly $100 billion this year as it aims to “invest aggressively” in its AI products.167 Total viewsNewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksMeta (META) shares dropped 15% in after-hours trading after the firm said it will “aggressively” ramp up spending in artificial intelligence spending while its metaverse division will continue to run at a loss —  amid a weak revenue outlook. 

The giant said in its April 24 first quarter 2024 results it expected expenses to rise to a range between $96 billion to $99 billion — up from $94 billion to $99 billion due to “higher infrastructure and legal costs.”

It also bumped full-year 2024 capital expenditures to a top end of $40 billion from its prior $37 billion as it would “invest aggressively to support our ambitious AI research and product development.”

Its metaverse building Reality Labs lost $3.85 billion in Q1 — down from nearly $4 billion it lost in Q1 2023 — but Meta said expected these losses to increase year-on-year to bankroll the division’s product development.

Related:Mark Zuckerberg says Meta wearables that read brain signals are coming soon

Meta shares slid 15.4% after-hours on April 24 to $417.22 following it closing the day down 0.5% at $493.50, according to Google Finance.Meta slid to an after-hours low of $402.98 before slightly recovering. Source: Google Finance

Meta is, however, still up 42.5% year-to-date after hitting an all-time high of $527.34 earlier this month on April 5.

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This is a developing story, and further information will be added as it becomes available.# Business# Virtual Reality# AI# Metaverse# MetaAdd reaction