Shares in Meta, the parent company of Facebook and Instagram, have dropped 15% due to the heavy costs associated with their artificial intelligence investments, erasing over $200 billion in market value.
Meta plans to spend $35 billion to $40 billion on artificial intelligence this year, impacting their near-term results, with second-quarter revenue expected to be lower than analyst estimates.
Mark Zuckerberg acknowledged the volatility in Meta's stock during investment phases, highlighting that new products may not initially monetize but can later become significant sources of revenue.
Despite criticism for overspending, Meta bounced back after focusing on efficiency measures, following the drop in stock value due to concerns over their metaverse investments.
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