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Prosper Junior Bakiny, The Motley Fool
Thu, August 6, 2026 astatine 12:20 PM CDT 4 min read
Things are going from atrocious to worse for Meta Platforms (NASDAQ: META). The institution already wasn't having a bully year, but its second-quarter results, released connected July 29, raised adjacent much concerns for galore investors and sent shares down astir 8% aft its update, wiping $18 cardinal from CEO Mark Zuckerberg's (whose wealthiness is mostly owed to his owning a ample information of the company) nett worth. Meta's shares rebounded somewhat aft the post-earnings drop, but they are inactive down 9% twelvemonth to date. Has the sell-off gone excessively far?
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Is Zuckerberg close this time?
One crushed investors are disquieted astir Meta's aboriginal is that the institution is spending heavy connected its artificial quality (AI) projects. During the 2nd quarter, these investments contributed to a 13% year-over-year diminution successful net per stock to $6.18. Even worse, Meta's escaped currency travel plunged by 91% twelvemonth implicit twelvemonth to $784 million. Zuckerberg is unapologetically bullish connected AI. But the past clip helium was that excited astir 1 of the company's initiatives, things didn't crook retired well. Several years ago, Meta Platforms started pouring tiny fortunes into its metaverse ambitions.
Zuckerberg had a expansive imaginativeness of a shared integer satellite wherever millions of radical could interact, perchance opening the doorway to billions of fiscal transactions that the institution could support. However, Zuckerberg's maestro program has failed, astatine slightest truthful far, and mostly ended up being a resistance connected net and margins. Many radical fearfulness that thing akin whitethorn hap with the company's AI-related ambitions.
Reasons to beryllium optimistic
Still, determination are important differences betwixt Meta Platforms' metaverse propulsion and the company's AI-related efforts. For one, the institution is already capitalizing connected the technology, arguably mode much than it ever profited from its enactment connected the metaverse. Meta's AI-powered algorithms person helped boost engagement connected its websites and apps, portion the institution is besides helping advertisers amended their advertisement campaigns.
Further, Meta Platforms' household of ample connection models, Llama, is 1 of the notable names successful the game. Meta AI, an AI adjunct that is powered by Llama, has a cardinal monthly progressive users. Also, Meta is reportedly moving to motorboat a unreality concern and rent retired excess AI computing capacity. According to Zuckerberg, the institution has galore offers on those lines.
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