Meta announces plans to spend billions more on AI

Along with higher expenses, the owner of Facebook, Instagram and WhatsApp forecast lighter-than-expected revenue, sending its shares tumbling. /p>

Meta forecast Wednesday that current quarter revenue would fall short of those expected by Wall Street and said it would spend billions of dollars more on its efforts in in terms of artificial intelligence, even if it announced robust revenues. and profits for the first three months of the year.

The turnover of the company, which owns Facebook, Instagram, WhatsApp and Messenger, increased rose to $36.5 billion in the first quarter, up 27 percent from $28.6 billion a year earlier and slightly above Wall Street estimates of $36.1 billion, according to compiled data by FactSet. Profit was $12.4 billion, more than double the previous year's $5.7 billion.

But the work of Meta on AI, which require significant computing power, come at a high price. The Silicon Valley company said it plans to raise its spending forecast for the year to $35 billion to $40 billion, up from a previous estimate of $30 billion to $37 billion. This decision was driven by heavy investments in AI. infrastructure, including data centers; chip designs; and research and development.

Meta also predicted that revenue for the current quarter would be between $36.5 billion and $39 billion, lower than analysts' expectations .

The combination of higher spending and lighter-than-expected revenue spooked investors, who sent Meta shares down more than 16% on Wednesday after- midday after closing regular trading at $493.50.

"Meta's earnings should serve as a stark warning to companies reporting results this season," said said Thomas Monteiro, senior analyst at Investing.com. Even though the company's results have been robust, "that doesn't matter as much as the lower revenue guidance" for the current quarter, he said, adding: "Investors are currently looking at the near future with great suspicion. »

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