Meta Platforms shares experienced a significant decline in extended trade following disappointing projections of increased expenses and lower-than-anticipated revenue. This marks the company’s second largest single-day stock value loss, surpassing the record $232 billion loss incurred on February 3, 2022. The company’s revenue forecast for the April-June period fell short of analysts’ estimates, casting a shadow over future growth prospects. Meta, the parent company of Facebook and Instagram, attributed the expense increases to investments in artificial intelligence (AI) products and the necessary computing infrastructure. These expenses are expected to continue rising in the coming year, with total expenses projected to reach $96 billion-$99 billion in 2024, up from the previous forecast of $94 billion-$99 billion. Despite the challenges, Meta’s first-quarter results showed a revenue increase of 27% to $36.5 billion and a significant profit increase, with earnings reaching $12.37 billion or $4.71 per share. The company’s daily active users (DAP) also grew by 7%, indicating a steady user base.
