Meta’s shares dropped over 8% in after-hours trading due to plans to invest between $130 billion and $145 billion in AI this year. The company missed Wall Street’s Q2 earnings forecast and projected weaker revenue for Q3. Despite this, revenue climbed 28% year-over-year to $60.8 billion, aided by AI advancements boosting its digital advertising business. Meta announced a partnership with BlackRock to build a $14 billion data center in El Paso, Texas. CEO Mark Zuckerberg expressed optimism about AI’s impact on future opportunities. Meanwhile, the broader market reacted to comments from the new Federal Reserve chief regarding potential interest rate hikes, contributing to a significant drop in the Dow Jones Industrial Average.
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Meta Shares Plummet in Volatile Market Amid Significant AI Investments and Mixed Q2 Results
