Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg’s estimated wealth fell nearly $9 billion as Meta shares reversed course after Goldman Sachs Group (NYSE:GS) raised concerns about the enormous investment required to build out artificial intelligence infrastructure.
Meta Stock Falls 4%
On Friday, Meta shares fell about 4% after gaining 4.5% the previous session, sending Zuckerberg’s estimated net worth down $8.9 billion to $257.5 billion, according to Forbes.
Goldman Sachs warned that AI hyperscalers, including Meta, face a massive revenue hurdle as they pour money into AI infrastructure.
The firm estimated that hyperscalers would need roughly $300 billion in annual AI services revenue just to break even on their capital spending and users would need to spend roughly $1 trillion in annual AI application spending for hyperscalers to generate solid returns.
Meta’s AI ambitions helped fuel a strong September rally. Shares had climbed roughly 36% during the month before Friday’s decline, with investor enthusiasm partly driven by its Muse AI assistant.
Rob Biederman, co-founder and managing partner at Asymmetric Capital Partners, said, "It’s logical that AI agents will become the front door to the internet for a lot of people, which puts the balance of power in Meta’s favour."
Meta’s Muse AI Expansion
Earlier this week, Meta expanded its Muse AI strategy into wearables, introducing new Ray-Ban Meta glasses, celebrity collaborations, hearing-enhancement features and Muse Charm, which Zuckerberg called a "joyful little device."
Meta also unveiled VR glasses he described as a "private cinema," workstation and gaming console.
JPMorgan analyst Doug Anmuth viewed the products as part of a broader Muse-based AI platform that could eventually generate revenue through transactions involving users, businesses and AI agents.
JPMorgan estimated the potential market could reach the "tens of trillions" of dollars.
LightShed Partners co-founder Rich Greenfield said Meta had "a true right to win in AI," citing its massive user base and software ecosystem.
He said the company’s AI spending had become more justified because it had developed "a real consumer product."
Constellation Research Chairman Ray Wang also highlighted Meta’s combination of AI, hardware and data while identifying Apple Inc. (NASDAQ:AAPL), OpenAI and Anthropic as major competitors.
The Benzinga Edge Stock Rankings now show a significant shift in Meta’s price trend, with its short-, medium- and long-term trends all turning positive, according to the latest data.
Price Action: Meta Platforms closed at $751.66 on Friday, with after-hours trading at $747.82, down 0.51%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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