Meta shareholders have an AI problem
Mark Zuckerberg is evidently struggling for a second time to get his fellow Meta shareholders on board with a big vision.
The Facebook and Instagram parent company saw its shares drop over 12% this week, wiping some $200 billion off the Silicon Valley firm’s stock market valuation in the aftermath of Wednesday night’s quarterly financial results.
It comes as Zuckerberg revealed on an investor call plans to spend between $35 billion and $40 billion per year on its artificial intelligence endeavours. He is also asking shareholders to be patient while waiting for this big investment to pay off.
Meta’s share price reaction says investors aren’t comfortable that this would be a sure bet.
Indeed, some may see it as a fresh folly, following Meta’s recent ‘metaverse’ splurge which saw Zuckerberg pour $46 billion into developing virtual digital worlds with limited tangible return on that investment.
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