Meta shares slump 10%, hit two-week low as AI spending concerns overshadow Q1 beat

Meta Platforms’ shares crashed 10.3% in Thursday’s trade, 30 April, to hit a two-week low of $600 apiece, marking the company’s biggest intraday decline in six months, as investors worried that the company’s rapid spending on artificial intelligence may not generate returns quickly enough, overshadowing an otherwise better-than-expected March quarter performance.

Meta reported first-quarter sales of $56.3 billion, ahead of Wall Street estimates of $55.51 billion, and guided current-quarter revenue in the range of $58 billion to $61 billion, broadly in line with expectations.