Meta, the parent company of Facebook, experienced a roughly 7 percent drop in its stock price Wednesday following the release of its quarterly earnings report. The results fell short of Wall Street’s expectations, impacted by rising costs associated with the artificial intelligence race. Significant legal expenses and severance packages also contributed to the weakened performance. Despite a 14 percent decrease in net income, amounting to $15.8 billion, revenue increased by 28 percent to $60.8 billion. This revenue growth, driven by strong advertising income, exceeded expectations according to AFP. The company faces a balancing act between investing in future technologies and maintaining profitability.