"Shares of the social media and online advertising giant have been on a wild ride of late. A market selloff driven by concerns around artificial intelligence (AI) spending has sent shares of every major mega-cap tech stock investing heavily in this trend (and Meta is one of the group) down significantly. From Meta's peak this year to its current level, shares are trading off around 25%."
"One of the most interesting stocks to watch in the market right now (in my opinion) is that of Meta Platforms ( NASDAQ:META). Quick Read Meta Platforms (META) shares declined 25% from their 2024 peak amid AI spending concerns. Meta generates more than 4 billion eyeballs across its social media applications globally. Meta's Reality Labs division is starting to show operating profitability after heavy losses."
"Remember the whole debacle around Meta's Reality Labs division? The company's heavy spending on its metaverse goals, in becoming a leader in both the hardware and software supporting virtual reality and a metaverse-driven future, hasn't really led to anything in the way of profitability. And while the company has ramped down its spending considerably in this division, it's the money-losing aspect of trying to be first (or capture some first-mover a"
Meta Platforms shares have declined roughly 25% from their 2024 peak amid investor concern about AI-related spending. The company still generates more than four billion eyeballs across its social media applications globally, supporting its advertising business. Reality Labs incurred heavy losses from metaverse-focused hardware and software investments but is beginning to show operating profitability after substantial spending reductions. The stock volatility reflects a conflict between long-term secular growth potential and near-term profitability risks, prompting differing investor views on whether the current dip represents a buying opportunity or a reason to favor other high-growth names.
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