Weak revenue forecast and Zuckerberg's comments on spending cause Meta to tumble 14%.

• On Thursday morning, Meta's stock price dropped by 14% after the company released disappointing revenue forecasts, despite reporting better-than-expected earnings for the first quarter.
• On Wednesday, Meta surpassed both its earnings and revenue expectations for the quarter, with $4.71 in earnings per share on $36.46 billion in revenue, compared to the forecasted $4.32 in earnings per share and $36.16 billion in sales, according to LSEG.
• On Wednesday, the stock sell-off accelerated during extended trading as CEO Mark Zuckerberg announced plans to invest in unprofitable areas such as artificial intelligence and mixed reality.

The stock price of the company tumbled 14% on Thursday morning, despite its first-quarter earnings beat, due to weak revenue guidance. The stock is currently trading at around $425, wiping out approximately $173 billion in market cap from its $493.5 closing price before earnings on Wednesday.

On Wednesday, Meta surpassed both its earnings and revenue expectations for the quarter, with $4.71 in earnings per share on $36.46 billion in revenue, compared to the forecasted $4.32 in earnings per share and $36.16 billion in sales, according to LSEG.

On Wednesday, the stock sell-off accelerated during extended trading as CEO Mark Zuckerberg announced plans to invest in unprofitable areas such as artificial intelligence and mixed reality.

The company's revenue forecast for the second quarter is between $36.5 billion and $39 billion, which is below the analysts' average estimate of $38.3 billion.

Meta's AI investments may ultimately pay off, according to JPMorgan analysts, who reiterated their overweight rating of the company and dropped their price target from $535 to $480.

The note on Thursday stated that Meta's virtual ownership of the social graph, strong competitive moat, and emphasis on user experience position it to become a long-term blue-chip company.

Analysts at Bernstein have lowered their price target for Meta shares from $590 to $565 while describing the company's current business strategy as an "expensive offensive" with a longer payback.

""Meta should maintain its elevated status, despite the uncertainty, as we believe in Zuck or not," they stated in a Wednesday note."

Barclays analysts kept an overweight rating for Meta stock and reduced their price target from $550 to $520 in a Wednesday investor note. Despite their expectation of a "bumpy ride for the rest of 2024 as revenue growth rates slow down significantly," they remain confident in the company's long-term prospects.

"META has demonstrated exceptional ability to excel during significant technology platform shifts, according to Barclays analysts. Zuckerberg's statement did not raise any major concerns."

— CNBC's Michael Bloom contributed to this report.