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▲ Meta (META), stock price decline/AI generated image
Meta Platforms' (META) artificial intelligence transition strategy is simultaneously revealing slower-than-expected results and the aftermath of organizational restructuring, creating cracks in Wall Street's AI premium.
According to the economic media outlet Benzinga on July 2 (local time), Meta Platforms CEO Mark Zuckerberg told employees at an internal town hall that the company's AI-centric organizational restructuring had not made as much progress as management had hoped. Zuckerberg said, "Over the past at least four months, the trajectory of agent development has not actually accelerated in the way we expected." He added that the bet on the new organizational structure "has not yet paid off."
In May, Meta cut approximately 10% of its global workforce and redeployed about 7,000 employees to AI-focused teams. This restructuring was intended to support the company's aggressive expansion of AI investment. However, Zuckerberg admitted that the organizational restructuring did not proceed as "cleanly" as planned, and explained that management had misjudged the timing of the changes.
Zuckerberg stated that earlier this year, management was "very optimistic" about the pace of AI tool development. In particular, he explained that coding assistant tools like Anthropic's Claude Code were expected to develop faster. He also mentioned concerns that Meta could fall behind competitors if it didn't move aggressively.
However, Zuckerberg did not view the results of AI investment as completely stalled. He stated that Meta expects to start seeing more meaningful returns from its AI investments in the next three to six months. While the pace of AI agent development fell short of expectations, this is interpreted as a commitment to maintain the company's strategic direction.
Controversy over employee monitoring also came to the fore. At the same town hall, Meta CTO Andrew Bosworth said that an investigation into employee activity tracking software found that employee data was not used to train AI models. Bosworth said that even if the program is reintroduced, it will operate on a voluntary participation basis, stating, "It's good for people who are comfortable with it, and not a problem for those who aren't."
Meta's stock closed down 4.90% at $582.90 in regular trading on Thursday, and rose 0.34% to $584.88 in after-hours trading. According to Benzinga Edge Rankings, Meta was in the 88th percentile for growth, but while its mid-to-long-term returns were negative, only its short-term price trend remained positive. With AI investment expectations and restructuring costs highlighted simultaneously, market scrutiny on Meta's stock is intensifying.
*Related Article: Meta 'stumbles' amid sharp decline from Asia...gives back stock gains despite AI clouding business card
[Article Key Summary]
-Mark Zuckerberg stated that Meta's AI agent development and organizational restructuring results have not materialized as quickly as expected.
-In May, Meta cut approximately 10% of its global workforce and redeployed about 7,000 employees to AI-focused teams.
-Zuckerberg expects AI investment results to become more apparent within the next three to six months.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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