Mark Zuckerberg's net worth may drop $25B in a day as Meta faces $350B sell-off
Business and Finance
AI summaryDisplay highlights
- Mark Zuckerberg's net worth could drop by $25 billion in a day
- Meta's stock price tumbled as much as 15% to $420 in premarket trading on Thursday
- Meta wasn't the only Big Tech stock under pressure
360 summary
- Investors are worried about the lack of a solid strategy for profitability, especially given Meta's recent expensive endeavors such as the metaverse.
- Meta's open-source approach to releasing its Llama large language models is seen as a risky strategy by some investors who question how it will make them money.
- While AI has more immediate, demonstrable uses than virtual reality, investors still require a clear and imaginative vision for how it will be a profitable venture.
Fortune- Meta's stock price drop could be a sign that investors are losing faith in AI investments in general
- Microsoft and Alphabet's results later today will provide more insight into the market's sentiment towards AI
- Meta's vast AI expenditure could prove to be a serious test of Zuckerberg's control over the company, and investors may punish the company if they don't like what they see
Fortune- Meta's stock price tumbled as much as 15% to $420 in premarket trading on Thursday, signaling investors may be souring on AI or worrying about market headwinds such as foreign conflicts, stubborn inflation, a potential recession, and interest rates perhaps staying higher for longer.
- Other Big Tech stocks were also under pressure, with Apple rejecting a new version of Spotify's iOS app in Europe, which included information about Spotify's pricing and its website, and the European Commission fining Apple $2 billion for "anti-steering" tactics.
- Despite this, Threads, the Instagram-linked X rival, is growing steadily with 150 million monthly active users, according to Mark Zuckerberg.
Fortune- Zuckerberg believes that investing in AI is a good long-term investment for Meta and its investors.
- He cautioned that building the leading AI will take several years on the upside once the new AI services reach scale.
- Meta's latest version of its chatbot, Llama 3, will power the company's new AI assistant, Meta AI, which will be integrated into many of Meta's products, including Instagram and Facebook.
entrepreneur.com- Tesla's net income fell by 55% YoY, but Musk's assurances of new models and increased production gave investors hope
- Meta's shares are down 11% since reporting earnings, as Zuckerberg warned of possible stock volatility due to AI adoption
- Musk and Zuckerberg have a long history of rivalry, with Musk challenging Zuckerberg to a "cage match" last year
Fortune- Elon Musk's ability to calm investor worries by appearing calm and collected on the quarterly earnings call has been a key factor in Tesla's stock performance.
- Mark Zuckerberg, on the other hand, had to warn investors that his bets on AI wouldn't pay off immediately, causing concerns over the cost of his future ambitions.
- Investors may be souring on AI, or worrying about market headwinds such as foreign conflicts, stubborn inflation, a potential recession, and interest rates perhaps staying higher for longer, which could have contributed to the decline in Meta's stock price.
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