Meta Shares Plunge as AI Spending Spooks Investors

Investors in Meta received a harsh reality check following the company’s third-quarter earnings report. Despite posting robust revenue figures, the social media giant’s stock plummeted by over 11% after CEO Mark Zuckerberg unveiled aggressive spending plans for artificial intelligence development that far exceeded market expectations.

The quarterly performance contained numerous positive indicators that typically would drive investor enthusiasm. Meta’s revenue surged by 26% to reach $51.24 billion, substantially outperforming analyst projections. The company’s advertising business demonstrated particular strength, with delivered ad volume increasing 14% while average ad prices rose 10%. User engagement remained strong across Meta’s family of platforms, with 3.54 billion people accessing services daily.

However, these achievements were dramatically Read more...