Meta’s AI Ambitions Spark Investor Anxiety Despite Record Earnings

Meta Platforms delivered what should have been a celebratory earnings report, yet investors responded with a dramatic sell-off. The divergence between operational success and market reaction highlights deepening concerns about the company’s aggressive spending on artificial intelligence infrastructure.

The social media giant surpassed expectations across key metrics in the third quarter. Revenue surged 26.2% to reach $51.24 billion, while earnings per share of $7.25 also exceeded projections. However, these impressive results were immediately eclipsed by the company’s revised expenditure guidance.

Capital expenditures for 2025 are projected to climb to between $70 billion and $72 billion, with the majority allocated to AI infrastructure development. This announcement triggered a substantial market reaction, sending shares Read more...