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Meta Platforms might operate some of the most popular social media sites in the world, but this didn’t translate into stock success on Friday. On news that a potentially significant product rollout will be delayed, investors traded out of Meta, leaving its shares with a 0.6% price loss on the day. Meanwhile, the S&P 500 index closed higher by roughly the same percentage.
Continued delays were reported towards the end of Thursday's trading session. The Wall Street Journal stated that Meta is delaying the launch of its flagship artificial intelligence (AI) model. Citing unnamed sources, it was reported that company engineers are struggling to enhance the functionalities of the model, code-named "Behemoth."
Originally, Behemoth was to be introduced in April, coinciding with Meta's first-ever specialized AI conference for developers. The launch was then pushed to June and now the plan is to introduce it in the fall -- or even later.
Meta has vast ambitions for AI, which is understandable given its potential to enhance many aspects of social media. Company founder and CEO Mark Zuckerberg has frequently expressed enthusiasm about this potential, speculating that users might eventually make AI friends and seek AI therapists.
Meta has not officially commented on the Journal report.
Although no longer a Meta investor, if I were, I doubt I'd be concerned about this development. Especially with a powerful technology, it's more important to perfect it rather than rush its introduction. AI might not be critical for the company, as it continues to thrive with its formidable social media portfolio.
This article has been published on fool.com via Yahoo News.
