Meta shares sink on higher AI spending, light revenue forecast


FILE PHOTO People walk behind a Meta Platforms logo during a conference in Mumbai India September 20 2023. REUTERSFrancis MascarenhasFile PhotoFile Photo

FILE PHOTO: People walk behind a Meta Platforms logo during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo/File Photo

(Reuters) -Meta Platforms disappointed investors on Wednesday with forecasts of higher expenses and lighter-than-expected revenue, knocking nearly $200 billion off its stock market value and raising fears the surging cost of AI is outpacing its benefits.

Shares of the Facebook and Instagram parent dropped about 15% in extended trade following the report, its market capitalization plunging to about $1 trillion.


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