As the market focuses on SpaceX, the hot new investment opportunity in artificial intelligence (AI), Meta Platforms (NASDAQ: META) shares have been under pressure.
The stock has been falling in recent days, and since the start of the year, it’s down around 14%
The stock has traded above $600 for much of the year, and even at that level, its valuation hasn’t looked all that high given its level of profitability and growth. With it now below that, has it become a bargain buy? Are investors growing concerned about Meta’s AI spend?
What may be rattling investors about Meta these days is its heavy expenditure on AI. The company has launched a new Superintelligence Labs division, brought in Alexandr Wang to lead it, and is now also reportedly looking to raise tens of billions of dollars to continue investing heavily in AI. While it has launched AI subscriptions that could offset the cost of investing in new AI capabilities, how much that might really offset is questionable.