The shares of Meta plummeted by 9%, marking the company's worst day of the year. The drop wiped out US$ 17.8 billion from Mark Zuckerberg's net worth, after Wall Street punished the company's significant increase in spending on artificial intelligence.
The decline extended Meta's negative streak to 11 consecutive trading sessions, with a cumulative loss of 21.7% during that period. The market began to demand concrete results and greater predictability in the use of capital allocated to artificial intelligence.
Why Wall Street punished Meta's artificial intelligence plan
The core of the concern was in Meta's new annual spending forecast, which the company raised to US$ 137.5 billion without committing to a figure for 2027. This lack of reference generated worry among analysts about a possible escalation of investments without a clear path to profitability.
The quarterly numbers also did not suffice to calm the market's reaction. The company reported earnings of US$ 6.18 per share, below the US$ 7.18 expected by the consensus surveyed by FactSet, although revenues exceeded projections, reaching US$ 60.8 billion.
How much Mark Zuckerberg lost and how his net worth changed
The stock market drop left Mark Zuckerberg with an estimated net worth of US$ 183.3 billion, making him the sixth richest person in the world. He is ahead of Nvidia founder Jensen Huang, with US$ 167.2 billion, and behind Michael Dell, whose fortune reached US$ 228.9 billion.
Analysts cut Meta's target prices
Several Wall Street firms lowered their estimates for Meta shares:
Scotiabank (Nat Schindler): from US$ 700 to US$ 600
