Meta's Rising Expenses Raise Questions Among Investors

Meta Platforms released its second quarter results. The company increased spending on artificial intelligence, which caught investors' attention.

Despite the company's revenue growth, investors focused on the sharp increase in expenses, after which Meta's stock price fell by approximately 8%.

Spending on data centers and chips necessary for artificial intelligence reduced earnings per share by 13%. During the same period, the amount remaining after operating and investment expenses fell by 91%, to 784 million dollars.

Some investors fear that artificial intelligence will become as costly a project for Meta as the metaverse was, although the company states that the new technology is already increasing user activity and improving advertising results.

Meta's artificial intelligence assistant currently has a billion active users. Despite high expenses, Meta's 3.6 billion audience remains one of the company's key advantages, which is why some analysts consider the stock's current price interesting.

Source: Yahoo Finance