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Shares in Meta, the owner of Facebook, WhatsApp and Instagram, have fallen sharply after the company revealed it had raised its cost forecast for the current year.

Investors sent the stock 10% lower in after-hours trading in New York when Meta‘s first-quarter results showed further bills were expected to fund new artificial intelligence (AI) products and the infrastructure behind them.

The company, founded and run by Mark Zuckerberg, said it now forecast 2024 capital expenditure in the range of $35bn-$40bn.

That was up from a previous range of $30bn-$37bn.

Mark Zuckerberg appears before US Congress
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Mark Zuckerberg, pictured at a US Congressional hearing, is under investor pressure to spend wisely

It also raised its total expenses forecast to $96bn-$99bn – a rise of $2bn in the low-range mark.

The shifts, while hardly huge in scale, nevertheless threaten to reopen old wounds following a 2022 row with investors over Zuckerberg’s bets on technology.

Meta has been updating its ad-buying products with AI tools and short video formats to boost revenue growth, while also introducing AI features like a chat assistant to drive engagement on its social media properties.

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The other main key metrics reported by the company beat financial market expectations, according to LSEG data.

Total revenue rose 27% to $36.5bn and Meta forecast a slight improvement in the current March-June quarter.

However, its low-range sum came in below market forecasts and analysts said that the company’s view had contributed to the share price sell-off.

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February: Facebook turns 20

A 10% reduction in the share price equated to lost market value of $125bn (£100.3bn) they said, as the values continued to fluctuate.

The stock remains around 30% up on the year to date.

Read more:
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Meta criticised after lowering WhatsApp minimum age from 16 to 13

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said of the reaction: “Meta’s substantial investment in AI has the ability to hugely improve engagement with its platforms, and therefore the amount marketers are prepared to pay for ad space.

“The group has indeed surpassed expectations in a time when digital advertising uncertainty remains rife.

“Over 50 countries are due… elections this year, which hugely increases uncertainty, and digital spending tends to move down when risks increase.

“This speaks to Meta’s enormous scale and importance to modern-day marketers. Its fortunes are probably also being bolstered by TikTok’s uncertain future in the US. One potential outcome from all this turmoil could well see TikTok added to the Meta family.”

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She added: “For all Meta’s bold AI plans, it can’t afford to take its eye off the nucleus of the business – its core advertising activities.

“That doesn’t mean ignoring AI, but it does mean that spending needs to be targeted and in-line with a clear strategic view.”

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US ramps up ‘drug boats’ operation by sending in aircraft carrier to region

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US ramps up 'drug boats' operation by sending in aircraft carrier to region

The US has announced it is sending an aircraft carrier to the waters off South America as it ramps up an operation to target alleged drug smuggling boats.

The Pentagon said in a statement that the USS Gerald R Ford would be deployed to the region to “bolster US capacity to detect, monitor, and disrupt illicit actors and activities that compromise the safety and prosperity of the United States homeland and our security in the Western Hemisphere”.

The vessel is the US Navy’s largest aircraft carrier. It is currently deployed in the Mediterranean alongside three destroyers, and the group are expected to take around one week to make the journey.

There are already eight US Navy ships in the central and South American region, along with a nuclear-powered submarine, adding up to about 6,000 sailors and marines, according to officials.

It came as the US secretary of war claimed that six “narco-terrorists” had been killed in a strike on an alleged drug smuggling boat in the Caribbean Sea overnight.

A still from footage purporting to show the boat seconds before the airstrike,  posted by US Secretary of War Pete Hegseth on X
Image:
A still from footage purporting to show the boat seconds before the airstrike, posted by US Secretary of War Pete Hegseth on X

Pete Hegseth said his military had bombed a vessel which he claimed was operated by Tren de Aragua – a Venezuelan gang designated a terror group by Washington in February.

Writing on X, he claimed that the boat was involved in “illicit narcotics smuggling” and was transiting along a “known narco-trafficking route” when it was struck during the night.

All six men on board the boat, which was in international waters, were killed and no US forces were harmed, he said.

Ten vessels have now been bombed in recent weeks, killing more than 40 people.

Mr Hegseth added: “If you are a narco-terrorist smuggling drugs in our hemisphere, we will treat you like we treat al Qaeda. Day or NIGHT, we will map your networks, track your people, hunt you down, and kill you.”

While he did not provide any evidence that the vessel was carrying drugs, he did share a 20-second video that appeared to show a boat being hit by a projectile before exploding.

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Footage of a previous US strike on a suspected drugs boat earlier this week

Speaking during a White House press conference last week, Donald Trump argued that the campaign would help tackle the US’s opioid crisis.

“Every boat that we knock out, we save 25,000 American lives. So every time you see a boat, and you feel badly you say, ‘Wow, that’s rough’. It is rough, but if you lose three people and save 25,000 people,” he said.

Read more:
Survivors reported after boat strike
US destroys ‘drug smuggling submarine’

On Thursday, appearing at a press conference with Mr Hegseth, Mr Trump said that it was necessary to kill the alleged smugglers, because if they were arrested they would only return to transport drugs “again and again and again”.

“They don’t fear that, they have no fear,” he told reporters.

The attacks at sea would soon be followed by operations on land against drug smuggling cartels, Mr Trump claimed.

“We’re going to kill them,” he added. “They’re going to be, like, dead.”

Some Democratic politicians have expressed concerns that the strikes risk dragging the US into a war with Venezuela because of their proximity to the South American country’s coast.

Others have condemned the attacks as extrajudicial killings that would not stand up in a court of law.

Jim Himes, a member of the House of Representatives, told CBS News earlier this month: “They are illegal killings because the notion that the United States – and this is what the administration says is their justification – is involved in an armed conflict with any drug dealers, any Venezuelan drug dealers, is ludicrous.”

He claimed that Congress had been told “nothing” about who was on the boats and how they were identified as a threat.

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Child killer executed in Tennessee ‘showed signs of life’ two minutes after his ‘death’

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Child killer executed in Tennessee 'showed signs of life' two minutes after his 'death'

A convicted child killer executed in Tennessee showed signs of “sustained cardiac activity” two minutes after he was pronounced dead, his lawyer has claimed.

Byron Black, who shot dead his girlfriend Angela Clay and her two daughters, aged six and nine, in a jealous rage in 1988, was executed in August by a lethal injection.

Alleged issues about his case were raised on Friday as part of a lawsuit challenging the US state‘s lethal injection policies, amid claims they violate both federal and state constitutional bans on cruel and unusual punishment.

The latest proceedings in Nashville were held to consider whether attorneys representing death row inmates in the lawsuit will be allowed to depose key people involved in carrying out executions in Tennessee.

The court heard that concerns had been raised before the execution that Black was being put to death with a working defibrillator implanted in his chest.

There were fears that the device would shock his heart when the lethal chemicals took effect.

The Death Penalty Information Center, which provides data on such matters, said it was unaware of any similar cases.

Seven media witnesses said Black appeared to be in discomfort during the execution. He looked around the room as the execution began, and could be heard sighing and breathing heavily, the AP news agency reported at the time.

An electrocardiogram monitoring his heart recorded cardiac activity after he was pronounced dead, his lawyer Kelley Henry told a judge on Friday.

Read more from Sky News:
Executed man took at least 15 minutes to die

US ramps up ‘drug boats’ operation

Ms Henry, who is leading a group of federal public defenders representing death row inmates in the US state, said only the people who were there would be able to answer the question of what went wrong during Black’s execution.

“At one point, the blanket was pulled down to expose the IV,” she told the court.

“Why? Did the IV come out? Is that the reason that Mr Black exclaimed ‘it’s hurting so bad’? Is the EKG (electrocardiogram) correct?”

A full trial in the case is scheduled to be heard in April.

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How much of the White House is Trump demolishing?

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How much of the White House is Trump demolishing?

👉 Follow Trump100 on your podcast app 👈 

Donald Trump begins bulldozing much of the White House as his plans to build a mega ballroom begin – without planning permission, nor true clarity as to how it’s all being funded.

There are aesthetic questions, historical questions and ethical questions. We dig into what they are.

And – who is the young Democratic socialist about to become New York City’s first Muslim mayor? We tell you everything you need to know about Zohran Mamdani.

You can also watch all episodes on our YouTube channel – and watch David Blevins’ digital video on the White House ballroom here.

Email us on trump100@sky.uk with your comments and questions.

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