Meta's weaker-than-expected sales forecast for the current quarter and plans for higher capital expenditures have raised questions about the broader AI investment thesis. The situation has sparked fear in the tech world, with shares of Amazon, Alphabet, and Microsoft also slipping after Meta's report. Social media companies have also experienced a tumble in post-market trading.
Key takeaways:
- A disappointing earnings report from Meta Platforms Inc. has caused concern among technology investors.
- Shares of Facebook’s parent were down as much as 19% in after-hours trading.
- An exchange-traded fund that tracks the tech-heavy Nasdaq 100 Index fell as much as 1% after Meta's forecast.
- Meta forecast weaker-than-expected sales in the current quarter while targeting higher capital expenditures.