“Meta” market value drops by $200 billion after Mark Zuckerberg’s statements

Meta’s market value fell by about $200 billion after the company’s shares fell by 19% in extended trading on Wednesday. The decline in shares of the company run by Mark Zuckerberg came despite the company’s announcement of profits and revenues exceeding expectations in the first quarter of 2024.

But at the same time, Zuckerberg worried the company’s investors during the earnings call yesterday, Wednesday, with his focus on long-term investments in artificial intelligence and the metaverse.

According to CNBC, Zuckerberg spent almost all of his opening remarks focusing on the many ways Meta loses money.

Meta relies on digital advertising for 98% of revenues, but as much as Zuckerberg talked about advertising, he was looking to the future.

In his discussions about building “groundbreaking AI,” he said: “There are many ways to build a huge business here, including advertising or paid content and commercial communications within AI interactions.”

However, Zuckerberg stressed that building pioneering artificial intelligence is a larger project than any other experience the company has added to its applications, and that it will take many years.

He also stressed that the company will continue to operate efficiently, but pointed out that converting current resources into resources to invest in artificial intelligence will lead to beneficial growth of its investment portfolio.

In the same context, Zurkberg stated that the company has historically witnessed many fluctuations in the share price during the stage that sees investment in a new product without generating income from it. He referred to previous efforts such as short videos known as Reels, as well as Stories.

Despite Meta’s stock losses in post-close trading, it has risen by about 40% since the beginning of 2024.