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STORY: Shares in Facebook-parent company Meta Platforms took a tumble in after-hours trade Wednesday. They sank around 15% after a forecast of higher expenses and weaker-than-expected revenue. The rising costs largely derive from spending on AI and the infrastructure needed to power new products. Meta says total expenses could go as high as $99 billion. Boss Mark Zuckerberg said investment would have to grow “meaningfully” before the company made much revenue from the new services. It’s been building products like a chat assistant meant to drive engagement on its social media platforms. But one analyst told Reuters that investors fear it could all take years to pay off. The warning on costs drove a slide for shares in other big AI players, including Microsoft and Nvidia. Meta’s first-quarter revenue of $36.5 billion was roughly in line with predictions, but its outlook for the April-June period was marginally short of expectations. The company could also now benefit from U.S. moves against rival TikTok. Lawmakers this week passed a measure allowing for a ban on the Chinese-owned short video network. That’s over allegations it poses a threat to national security. However, Meta CFO Susan Li says it’s too early to assess the impact of any such move.
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