Particle.news
Download on the App Store

Meta Stock Slides as AI Spending Plan Balloons to $70–$72 Billion, With Bigger 2026 Outlays

Investors question payback, drawing parallels to the metaverse era.

Overview

  • Shares fell almost 17% across four sessions, erasing about $307 billion in market value in the worst multi‑day drop since November 2022.
  • Meta lifted 2025 capital‑expenditure guidance to $70–$72 billion and signaled 2026 will be notably larger as it builds AI infrastructure, CFO Susan Li said.
  • CEO Mark Zuckerberg defended front‑loading capacity for Meta Superintelligence Labs as preparation for potential breakthroughs in artificial general capabilities.
  • Skeptics highlighted unclear monetization without an enterprise cloud business, with Oppenheimer downgrading the stock and Bank of America warning on earnings quality tied to off‑balance‑sheet debt and a large write‑off.
  • Supporters pointed to strong Q3 results and a discounted valuation, noting revenue rose 26% to $51.2 billion with adjusted EPS beating forecasts, and some commentators, including Jim Cramer, called the sell‑off overdone.