Meta Revenue Soars, Stocks Dive Amid Costly AR/VR Push and Gloomy Tech Forecasts
April 26, 2024Meta Platforms Inc. reported a significant increase in revenue and net income, rising 27% to $36.5 billion and 117% to $12.4 billion respectively in Q1 2024.
Despite strong financial performance, Meta's AR/VR division, Reality Labs, suffered a substantial loss of $3.85 billion.
CEO Mark Zuckerberg's announcement of increased spending on long-term initiatives led to a sharp drop in Meta's stock price.
Meta's financial forecast and investment in AR/VR and AI technologies influenced a broader tech sector slump and affected U.S. stock market sentiment.
The Japanese yen hit a 34-year low in the FX market, partly due to Meta's disappointing forecasts.
Economic data indicating slower growth and higher inflation, along with mixed corporate results, led to cautious market sentiment and potential impacts on future Fed interest rate decisions.
Summary based on 191 sources
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Sources
The New York Times • Apr 25, 2024
Wall Street’s Patience for a Costly A.I. Arms Race Is WaningThe New York Times • Apr 24, 2024
Meta’s Profits More Than Double, While Spending on A.I. RisesForbes • Apr 25, 2024
Tech Stocks Tumble As Meta’s AI Bet Spooks InvestorsForbes • Apr 24, 2024
Meta Stock Tanks 10% Despite Big Earnings Beat