Meta Stock Plunges 4.22% Amid Tax Controversy, AI Leadership Change

On April 3, 2025, Meta's stock experienced a significant drop of 4.22% in pre-market trading, reflecting investor concerns and market sentiment towards the company.

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 eyebrows and sparked criticism, as Meta's strategy of transferring profits to its Irish subsidiary has been seen as a form of tax avoidance. The company's total revenue in Korea grew by 13.3%, but the low tax payment has drawn criticism from industry experts and the public.

In the AI research domain, Meta's FAIR (Fundamental AI Research) team is facing a significant change with the departure of its leader, Joelle Pineau. Pineau, who has been instrumental in driving the team's success and fostering a collaborative research environment, will leave her position in May 2025. Her departure has sparked discussions about the future direction of FAIR and the potential impact on Meta's AI initiatives. The company is actively seeking a new leader to continue the team's innovative work and maintain its competitive edge in the AI field.

Meta is also facing scrutiny from U.S. lawmakers regarding its past efforts to establish a presence in China. A Senate Judiciary Subcommittee hearing is scheduled to examine Meta's alleged ties to censorship tools and its interactions with the Chinese government. This investigation comes amid concerns over Meta's internal efforts to engage with China, as detailed in a book by a former Facebook executive. Meta has stated that it no longer operates in China and has abandoned its plans to enter the market, but the hearing will delve into the company's past actions and their implications.