Any of IG support team that i can contact?
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Facebook owner Meta Platforms saw its shares down heavily in extended trade after revenue forecasts disappointed. Some analysts are also now questioning the staggering amounts of money Meta is investing in artificial intelligence. Written by: Jeremy Naylor | Analyst, London Publication date: Thursday 25 April 2024 10:28 Earnings per share came in at $4.71, comfortably above estimates of $4.32 and revenues up 27% year-on-year, at $36.46bln, above the forecasts of $36.16bln. That was the fastest rate of revenue expansion for any quarter since 2021. However, shares have quite clearly been priced for perfection as the outlook, however strong it is, quite clearly disappointed the market. Q2 revenue is expected at $36.5 to $39bln with the midpoint at $37.75bln, which would represent 18% year-over-year growth, but below analysts' average estimates of $38.3bln. However, the company is also expected to invest between $30-37bln into AI, possibly as much as $40bln, which some said was too much given current engagement. (AI Video Summary) Meta Meta Platforms, the parent company of Facebook, experienced a significant stock drop post-market following its quarterly earnings report, despite beating earnings expectations with a share price of $4.71 against a forecast of $4.32, and posting revenues of $36.46 billion. Meta's aggressive investment in AI technology This drop was attributed to concerns over its aggressive investment in AI technology, with spending on AI expected to be between $30 to $40 billion. Despite initial investor trepidation, there's notable buying interest in the stock at the lower prices, with 87% of clients holding long positions. The heavy investment in AI technology continues to spark debate among investors regarding the company’s future direction. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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