Data-center stocks buoyed an otherwise down chip sector Thursday, as shares of Facebook parent Meta Platforms Inc. cratered on torn-in-half profits and a hike in capital spending to fuel Mark Zuckerberg's metaverse ambitions. One analyst is asking if server chips can only go up. Read More...
Reuters
Meta stock craters over bleak forecast and expensive metaverse bets
Facebook parent Meta Platforms Inc on Wednesday forecast a weak holiday quarter and significantly more costs next year, sending shares down nearly 20% as investors voiced skepticism about the company’s pricey metaverse bets. The forecast knocked about $67 billion off Meta’s stock market value in extended trade, adding to the more than half a trillion dollars in value already lost this year. If Meta’s after-hours stock rout is matched in Thursday’s trading session, it will have been its deepest one-day loss since Feb. 2, when the company last issued a dismal forecast.
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