Shares of Meta Platforms sank 13% on Wall Street 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.The drop was set to erase nearly $170 billion from the company's market value and triggered a fall of 3% to 4.2% in shares of AI-focused Microsoft and Alphabet, both of which report earnings after market close.
It also raised the top end of its capital expenditure view as it invests in data centers essential to its efforts to catch up with AI frontrunners OpenAI and Microsoft.The dour expectations follow a series of smash-hit earnings that helped Meta nearly triple its stock in 2023 and powered the biggest one-day market value gain by any company in Wall Street history, of $196 billion, in February after its maiden dividend.
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Meta profits soar but costs of AI cause worryFacebook-owner Meta on Wednesday said its quarterly profits soared last quarter, but worries about the cost of artificial intelligence saw its share price take a hit on Wall Street.
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