Meta Stock Drops 3.48% Amid Tax Controversy, AI Leadership Change

On April 3, 2025, Meta's stock experienced a 3.48% drop in pre-market trading, reflecting investor concerns and market sentiment.

Meta's tax practices in Korea have come under scrutiny, with the company reportedly earning nearly 100 billion Korean won through Instagram and Facebook, but only paying 5.4 billion Korean won in corporate taxes. This discrepancy has sparked criticism and accusations of tax avoidance, as Meta's Korean subsidiary transferred a significant portion of its revenue to its Irish headquarters as "advertising procurement fees."

Meta's AI research division, FAIR, is facing a significant leadership change with the departure of Joelle Pineau, who has been a key figure in the team's success. Pineau's departure has raised questions about the future direction of FAIR and its impact on Meta's AI initiatives. The company has initiated a global search for a new leader to continue FAIR's innovative work.

Meta is also facing scrutiny from U.S. lawmakers regarding its past efforts to establish a presence in China and its alleged ties to censorship tools. The Senate Judiciary Subcommittee is set to hold a hearing to examine these issues, which could further impact the company's reputation and stock performance.