Meta Stock Plummets Despite Earnings: AI Spending and Tax Bill Cited
Meta Platforms experienced a significant stock drop despite reporting positive results, primarily due to concerns surrounding its substantial investments in artificial intelligence. The company increased its 2025 capital expenditures guidance to between $70 billion and $72 billion to accelerate the development of advanced AI tools. CEO Mark Zuckerberg defended this aggressive spending strategy, emphasizing the early returns in the core business and the company’s proactive approach to capitalizing on future advancements in superintelligence. Zuckerberg believes these investments will strategically position Meta for major opportunities in the coming years.
John Q. Hosedrinker