Meta Could Cut 20% of Its Jobs as AI Costs Pile Up. Should You Buy, Sell, or Hold META Stock Before Layoffs?

Meta (META) is not where it was supposed to be in the AI race. While Anthropic's Claude, Alphabet's (GOOG) (GOOGL) Gemini, and OpenAI's ChatGPT compete fiercely for the top position in the realm of AI chatbots, Meta AI is nowhere in the conversation. Damningly for Mark Zuckerberg, direct rival xAI's Grok model has also surged ahead of it.

This was not the case about a year ago, when, with the announcement of Superintelligence and after assembling a super team of AI veterans helmed by Scale AI's Alexander Wang, Meta was perceived to be the frontrunner in AI. Well, the stock is down more than 14% since then, and its market cap has corrected to $1.6 trillion from $1.7 trillion.