The giant in the field of social platforms Meta lost a significant part of its market value after a sell-off of its shares on Wall Street, the world agencies report. At the bottom of the 15 percent drop since before trading began was artificial intelligence, or rather the inability of Mark Zuckerberg’s people to turn it into a profitable business.
Meta has made it clear that it will be years before their huge investment in AI pays off. Additionally, the Facebook and Instagram owner’s revenue will miss estimates in the second quarter and full-year expenses will rise by another $2 billion.
The creator of Meta “secretly” sold a super mansion in the state of California
After the sale of the mansion and in 2022, the billionaire now has only one property in the “golden state”
Predictably, the market was not enamored with the news and Meta quickly lost $180 billion in market value.
The stock selloff overshadowed an otherwise solid Q1 performance — a 27% year-over-year rise in revenue to $36.5 billion, nearly double profit growth to nearly $14 billion. However, there is bad news in this report as well – Meta’s large VR investments are also not paying off, and this part of the company’s business is “in the red” by $3.8 billion in just one quarter.
As The Register points out, the severe punishment the market has meted out to Zuckerberg and company shows that investors are clearly not ready to wait for artificial intelligence to live up to expectations (and money).
