Shares in Meta, the parent company of Facebook, WhatsApp, and Instagram, experienced a significant drop in premarket trading on Thursday. The stock plummeted by approximately 13%, putting nearly $163 billion of the company's market value at risk. This decline came as a result of Meta's announcement to 'invest aggressively' in artificial intelligence, which caused concern among investors.
Despite reporting a substantial increase in first-quarter profit and revenue, investors appeared apprehensive about the substantial costs associated with Meta's ambitious AI initiatives. The company revealed plans to invest up to $5 billion in AI projects, with the possibility of further increases in the coming years. This heightened level of investment raised uncertainties among shareholders.
