Earnings Highlights and Market Reaction
Despite reporting better-than-expected profit and revenue for the first quarter, Meta’s stock suffered a dramatic decline in extended trading. The drop reflects investor concerns about the company’s focus on projects like AI and the metaverse, areas that are not yet revenue-generating. Zuckerberg’s extensive discussion about future technologies, rather than current revenue drivers like digital advertising, has unsettled the market.
Financial Performance and Strategic Shifts
Meta’s digital advertising continues to be its primary revenue source, accounting for 98% of total earnings. However, Zuckerberg’s narrative centered on potential future income streams from AI and new hardware such as mixed reality headsets and…
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