Despite strong first-quarter results, Meta’s stock plummeted nearly 9% Thursday, thanks in part to a drop of 20 million users and a massive spike in AI spending even as the company continues to pour billions into its metaverse and virtual reality division, Reality Labs.
The company, which reported its first-quarter results Wednesday afternoon, exceeded analyst expectations on both net income and revenue, which stood at $26.8 billion (partly boosted by a one-time $8 billion tax benefit) and $56.3 billion, respectively, according to a filing with the Securities and Exchange Commission. Meta also saw a 33% revenue increase compared to the same quarter last year, its biggest year-over-year increase in five years.
