Meta shares plunge on prolonged AI spending

California: Meta Platforms' shares dropped 14% in premarket trading due to concerns over prolonged spending on artificial intelligence (AI). The company's expense and revenue forecast sent shares down 15% in after-market trading, wiping nearly $200 billion off its market valuation to around $1 trillion. Meta narrowed its expense forecast for the year to $96-99 billion to support AI investments, expecting spending to rise next year. Analysts at Morgan Stanley and Baird support the move, emphasizing the need for investment in AI infrastructure. CEO Mark Zuckerberg highlighted the focus on AI during a conference call, tempering revenue expectations from AI investments.— Reuters