Meta Stock Drops 3.33% Amid Tax Controversy, AI Leadership Change

On April 3, 2025, Meta's stock experienced a 3.33% drop in pre-market trading, reflecting investor concerns and market dynamics.

Meta has been under scrutiny for its tax practices in Korea. The company reported earning nearly 10,000 billion Korean won through its local advertising business, but only paid 54 billion Korean won in corporate taxes. This discrepancy has raised questions about Meta's tax strategies and has led to criticism from industry experts and the public. The company's approach of transferring a significant portion of its revenue to its Irish subsidiary as "advertising procurement fees" has been a point of contention, contributing to the overall negative sentiment surrounding the stock.

Additionally, Meta's AI research division, FAIR, is facing a significant leadership change with the departure of its head, Joelle Pineau. Pineau's eight-year tenure at Meta has been marked by significant advancements in AI research and a strong focus on fostering a collaborative and innovative team culture. Her departure has raised concerns about the future direction of FAIR and its impact on Meta's overall AI strategy. The company is currently in the process of selecting a new leader for the division, which will be crucial in maintaining the momentum and innovation that FAIR has become known for.