Meta’s shares plummeted Tuesday, ending a 20-session winning streak on Wall Street. The decline marked its worst day since December 18, with losses of over 2.76%. However, the tech giant still sees significant growth in the year, with shares up 17% over the last month and 22% year-to-date.
CEO Mark Zuckerberg announced a massive investment plan to build AI data centers this year, estimated at $65 billion, significantly increasing from $40 billion previously allocated. The company plans to construct a large data center in Louisiana, comparable to Manhattan’s size.
Despite other Big Tech companies facing challenges, Meta’s recent wins are attributed to its successful investments in artificial intelligence, which analysts believe is outperforming competitors like Google and Microsoft.
Meta has been focusing on technologies that power its advertising business, leading to an 8% increase in time spent on Facebook and a 6% increase on Instagram this year alone. The company also saw a surge in advertisers using its generative AI tools, with 4 million users now creating ads, up from 1 million six months ago.
The recent open-source AI model release by AI startup DeepSeek validated Zuckerberg’s decision to share Meta’s Llama models, potentially paving the way for a steady flow of revenue through software licensing agreements.
Source: https://finance.yahoo.com/news/metas-stock-closes-down-snapping-20-session-winning-streak-211711428.html