The stock value of Meta Platforms, Inc. (previously known as Facebook, Inc.) dropped considerably by over 14% in pre-market trading on Thursday, falling to $420.88. This decrease was largely due to the company's announced revenue projection for the second quarter.
Meta has predicted its Q2 revenue to fall between $36.5 billion to $39 billion. This estimate stands in sharp contrast to the anticipated average prediction of $38.28 billion, according to a poll of 42 analysts conducted by Thomson-Reuters.
Adding to the complexity, Meta also revised its projected capital expenditures for the entire fiscal year. The company adjusted its forecast from the initial $30 billion-$37 billion range to a staggering $35 billion-$40 billion. This substantial increase in spending primarily aims to expedite the development of its artificial intelligence products.
As of the most recent close, Meta's shares stood at $493.50. Over the past year, the company's stock has varied between $229.85 and $531.49.
