Why Meta Platforms Stock Plummeted This Week
Meta Platforms' stock fell 9.8% after the company reported Q1 results, despite beating Wall Street's forecasts for sales and earnings. The decline was attributed to concerns over user engagement and the company's increased capital expenditures on artificial intelligence.
Meta Platforms' stock plummeted 9.8% this week following the company's Q1 results, despite beating analyst estimates. The company reported non-GAAP earnings of $7.31 on revenue of $56.31 billion, exceeding forecasts. However, user engagement declined sequentially, partly due to internet disruptions in Iran and restricted WhatsApp access in Russia. Meta's capital expenditures were lower than expected but the company updated its full-year capex target to between $125 billion and $145 billion, up from the previous target. The increased spending is focused on building out its artificial intelligence capabilities, which may create near-term drag on earnings.
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