From Nasdaq: 2024-04-27 10:11:00

Meta Platforms (NASDAQ: META) stock initially surged in 2023, but dropped 15% after reporting strong first-quarter earnings. Revenue hit $36.5 billion, beating estimates, with operating margin improving to 38%. However, guidance for the second quarter fell short of expectations, raising concerns among investors about increased expenses and capital expenditures.

Investors were disappointed with Meta’s guidance, which included higher expense forecasts due to infrastructure and legal costs. Operating losses in the Reality Labs segment were a cause for concern, as the company continued to invest heavily in AI. Despite this, CEO Mark Zuckerberg remains optimistic about the company’s long-term prospects and innovation in AI technologies.

The Motley Fool Stock Advisor team did not include Meta Platforms in their list of 10 best stocks for investors to buy now. While the company has potential for long-term growth, the recent stock pullback presents a buying opportunity for investors willing to weather the volatility. Investors should carefully consider Meta’s investment outlook before committing funds.



Read more at Nasdaq: Meta Platforms Stock Just Plunged. Should You Buy the Dip or Run for Cover?