Meta Just Crushed Earnings. So Why Does Wall Street Keep Selling the Stock?
Investors must decide whether Meta's remarkable ad business outweighs its eye-watering AI spending.
Meta Just Crushed Earnings. So Why Does Wall Street Keep Selling the Stock?
Overview
Investors had much to celebrate when Meta Platforms (NASDAQ: META) reported its first-quarter earnings in late April. Revenue grew by 33% to $56.3 billion, operating margins held at 41%, and the company's earnings per share topped Wall Street's number. The social media giant is firing on all cylinders.
Then why did Wall Street sell the stock? The stock plummeted after earnings. Shares have rebounded a bit since then, but Meta Platforms still sits far below its 52-week high of $796 per share.
Details
The answer is simple: The market has grown wary, perhaps outright fearful, of Meta's relentless spending on artificial intelligence (AI). Here's whether investors should be afraid to buy the stock today.
Source
Originally published at www.fool.com.
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