Meta tempers expectations for second-quarter revenue

News Snapshot:

Meta Platforms META-Q on Wednesday forecast that second-quarter revenue could come in below market expectations, signaling a possible reality check around hopes for how much new AI tools may boost the company’s business. Meta’s shares dropped about 10% in extended trade following the report, evaporating $125 billion worth of stock market value. The Facebook and Instagram parent expects April-June revenue in the range of $36.5 billion-$39 billion, with a midpoint of $37.8 billion, compared with analysts’ estimates of $38.3 billion, according to LSEG data. Meta also raised its forecast for expenses this year to support its investments in new AI...