Why Is Meta Stock Down In Premarket Today?

• Meta’s AI model, Avocado, did not perform as strongly as Gemini 3, sources told The New York Times
• The company has delayed its release to at least May from this month. 
• Retail sentiment on Stocktwits for Meta has been ‘bearish’ for weeks.

Meta Platforms shares declined 1% in early premarket trading on Friday after The New York Times reported that its forthcoming flagship AI model did not meet internal benchmarks, delaying its planned release.

The Times’ report, based on information from three anonymous sources, said the model, code-named Avocado, fell short of the performance of leading AI models from rivals like Google, OpenAI and Anthropic on internal tests for reasoning, coding and writing.

As a result, Meta has delayed the release to at least May from this month. Top executives at Meta’s AI division have also reportedly discussed temporarily licensing Gemini to power the company’s AI products, though no decisions have been reached.

Google’s Gemini 3 Benchmark

Avocado outperformed Meta’s previous AI model and did better than Google’s Gemini 2.5 model from March, the report said. But it has not performed as strongly as Gemini 3.0 from November.

The reported development comes as another signal of strength for the Gemini 3 model, which has single-handedly lifted Alphabet’s earnings and stock in the last two quarters. Apple has also partnered with Google to use its Gemini technology for AI features on Apple devices, set to be rolled out soon.

Last year, CEO Mark Zuckerberg pivoted Meta Platforms toward artificial intelligence development. The company set up its Meta Superintelligence Labs team by poaching AI engineers from rivals with eye-popping offers, while launching several versions of its Llama models and integrating them deeply into its social apps, such as Instagram.

According to an earlier report in the Times, Meta is reportedly restructuring the engineering teams and its AI research divisions as part of a broader push toward advanced AI. The changes impact the role of Alexandr Wang, founder of Scale AI and head of Meta Superintelligence Labs.

Meta Stock Move, Retail View

Meta shares surged in late January after the company reported quarterly results that topped expectations. However, those gains have since been erased as plans to ramp up capital expenditures, along with a broader tech sector sell-off last month, weighed on the stock.

On Friday, U.S. stock futures slipped as investors assessed heightened risks amid the escalating conflict between the U.S. and Iran.

On Stocktwits, retail sentiment for META has tracked in the ‘bearish’ zone for three weeks. Year to date, the stock is now down 3%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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