After revealing a more than anticipated investment in artificial intelligence (AI), Meta, the company that owns Facebook, WhatsApp, and Instagram, saw a dramatic decline in its stock price.
In the New York after-hours trade, they fell by over 15%, even though the tech titan released impressive financial results.
CEO Mark Zuckerberg stated that before its massive AI investment increases income, some time will pass.
Additionally, Meta reported that Threads, its X competitor, now boasts over 150 million active monthly users, putting further strain on the Elon Musk-owned network.
According to analyst Mike Proulx of Forrester, “Threads is well on its way to beating X by becoming the Twitter alternative users and advertisers are longing for.”
He added that Meta stood to benefit from TikTok’s potential sale or prohibition in the US, a move the app has vowed to oppose.
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