Meta: Stock Market Crash, Doubts About Artificial Intelligence Profitability

It will take a long time and a lot of investment before artificial intelligence starts to make a profit. That’s one of the reasons for Meta’s collapse on Wall Street on April 25.

Shares of Meta Platforms, the owner of well-known social networks, such as Facebook, Instagram, and WhatsApp, fell 13%, triggering a collapse in tech stocks immediately after Mark Zuckerberg’s statements on artificial intelligence, who explained how his “bet on AI” could take years to “pay off.”

The decline has burned through nearly $170 billion, causing a decline of “between 3% and 4.2% – according to a Reuters report – in Microsoft and Alphabet shares.” In any case, Meta is up 40% since the beginning of the year, up 130% since April 2023.

Meta’s balance sheet for the first quarter of the year, among other things, is extremely positive, with revenue up 27.6% to $36.46 billion, exceeding analysts’ expectations and the third consecutive quarter with higher growth of up to 20%.

To that end, Zuckerberg explained that it’s a good start to 2024 and that apps continue to grow, with the number of daily active users up 7% compared to last year, surpassing 3.2 billion.