Meta wants to spend more even after it lost $80 billion on the Metaverse and over 20 million users |
Meta wants to spend more even after it lost $80 billion on the Metaverse and over 20 million users
Despite strong first quarter results, Meta’s stock plummeted nearly 9% Thursday thanks in part to a 20-million user drop and a massive spike in AI spending even as it continues to pour billions into its metaverse and virtual reality division, Reality Labs.
The company, which reported its first quarter results Wednesday afternoon, exceeded analyst expectations on both net income and revenue, which stood at $26.8 billion (partly boosted by a one-time $8 billion tax benefit) and $56.3 billion, respectively, according to a filing with the Securities and Exchange Commission. Meta also saw a 33% revenue increase compared to the same quarter last year, its biggest year-over-year increase in five years.
Yet, investors apparently paid more attention to the bad news.
The company recorded 20 million fewer global users for its family of apps in the first quarter compared to the previous three months, a setback that Meta’s chief financial officer, Susan Li, blamed on “internet........