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Meta Shares Drop 10% After DAU Miss, JPMorgan Downgrades

5/2/2026

31 5 Full Breakdown

Summary

Meta Shares Plunge

Meta Platforms' shares fell more than 10% on Thursday, erasing about $170 billion in market value.
Q1 revenue hit $56.3 billion, up 33%, and net income was $26.8 billion, aided by an $8 billion tax benefit.
Daily active users were 3.56 billion, below the 3.62 billion forecast because of Iran outages and Russia's WhatsApp limits.
JPMorgan cut Meta to Neutral, lowered the price target to $725, and cited higher chip prices and compute underestimates.

Summary

Alphabet Sells AI

Alphabet will sell its Tensor Processing Unit AI chips to other firms this year, a market valued at $900 billion, and Meta is already a customer.
Google Cloud posted Q1 revenue of over $20 billion, up 63%, financing its AI infrastructure expansion.
China blocked Meta’s acquisition of AI-agent startup Manus, cutting a potential AI growth path.
AWS reported Q1 revenue of $37.6 billion, a 28% rise, and will sell Trainium AI chips externally.

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Meta Shares Plunge

Meta Platforms' shares fell more than 10% on Thursday, erasing about $170 billion in market value.
Q1 revenue hit $56.3 billion, up 33%, and net income was $26.8 billion, aided by an $8 billion tax benefit.
Daily active users were 3.56 billion, below the 3.62 billion forecast because of Iran outages and Russia's WhatsApp limits.
JPMorgan cut Meta to Neutral, lowered the price target to $725, and cited higher chip prices and compute underestimates.

1 / 2