Particle.news
Download on the App Store

Meta Extends Slide on AI Spending Concerns

Skepticism over massive AI outlays leaves Meta trading at the Magnificent Seven’s lowest forward multiple.

Overview

  • Shares are now nearly 25% below the August record as investors reassess heavy plans for AI infrastructure and Reality Labs.
  • Yahoo Finance reports about 600 roles were cut in Meta’s AI group, with the prospect of further reductions as the company trims costs.
  • Analyst views remain mixed, with Needham maintaining a Hold rating and Mizuho reiterating a Buy while lifting its price target to $920 last week.
  • Recent coverage highlights Meta’s relatively low valuation within big tech despite strong Q3 results that topped revenue and earnings estimates.
  • Reports from multiple outlets describe prospective U.S. AI infrastructure commitments approaching $600 billion over coming years, a scale that continues to weigh on sentiment.