Meta’s Earnings report has sparked concern among technology investors, as they await the results of major stock market companies in the coming days.
Tech Stocks Tumble
- Nasdaq 100 Index fell by up to 2% due to Meta’s forecast of weaker-than-expected Q1 sales and higher capital expenditures.
- The selloff wiped out approximately US$400 billion in market value.
- Alphabet and Microsoft both dropped over 5%. Amazon.com fell nearly 6%.
Meta Shares’ AI Spending and Revenue Forecast
- Meta shares rallied amid heavy AI spending, aiming to boost results.
- Disappointing revenue forecast raises questions about returns on AI investments and high expectations for other tech peers.
- Cresset Wealth Advisors’ Jack Ablin argues that the revenue disappointment overshadows optimism about AI.
- Lynx Equity Strategies analysts question the company’s ability to beat June expectations and if gen AI monetization is on track with management’s expectations.
Meta’s Market Loss and Potential Opportunities
- International Business Machines Corp. and ServiceNow Inc.’s shares slumped after their own earnings reports.
- Meta erased over $170 billion in market capitalization.
- Some analysts see this as a buying opportunity.
- Portfolio manager at SG Prevoir suggests Meta’s fall could create interesting entry points.
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