Wall Street Flashes Concerns Over Meta’s Expensive Push Into AI Development

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Despite beating estimates and doubling its Q1 net income to $12.37 billion, the tech company’s shares fell 16% in after-hours trading

Meta Earnings
Photo illustration by TheWrap

Meta’ aggressive push into AI development spooked Wall Street on Wednesday, despite the tech company reporting first quarter income that soared by 117% on revenues up 27% to $36.46 billion, both of which beat analysts’ consensus estimates.

But plans by the company to further boost its spending on AI initiatives — as Meta races to compete with Google, Microsoft and OpenAI — led to pointed questions by analysts about the company’s ability to turn monetize those investments. Meta shares plummeted 16% in after-hours trading.

Revenues: $36.46 billion, up 27% from the year-ago period

Net income: $12.37 billion, a 117% increase over $5.71


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