Shares of Meta Platforms sank 13% on Thursday, sparking a selloff in big technology stocks after the social media firm signaled its costly bet on AI could take years to pay off.
sank 13% on Thursday, sparking a selloff in big technology stocks after the social media firm signaled its costly bet on AI could take years to pay off.
"Investors were caught off guard by higher capital expenditure, exacerbated by slightly softer second-quarter revenue guide. As such, shares are entering the 'penalty box,'" Baird Equity Research analysts said. "We think this time it is different," Evercore ISI analysts said. "This investment cycle comes from a position of strength, as management continues to see a healthy ad demand environment into Q2 and improving user engagement."
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