The premarket drop was set to erase more than $180-billion from Meta’s market value and triggered a drop of 2% to 5% in shares of AI-focused firms Microsoft, Alphabet and Snap
sank nearly 15 per cent on Thursday, sparking a selloff in big tech stocks after the social media giant signalled its costly bet on AI would take years to pay off.
That stoked investor fears that Zuckerberg was plunging Meta into another costly endeavour at a time when its augmented and virtual reality business was losing billions of dollars each quarter. The dour expectations follow a series of smash-hit earnings that helped Meta nearly triple its stock in 2023 and powered the biggest one-day market value gain by any company in Wall Street history, of $196-billion, in February after its maiden dividend.
Overall, 17 analysts lowered their price targets on the stock, while eight raised their view, according to LSEG data. The median price target now stands at $525, which is about 6 per cent higher than its previous close.
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