Meta's stock dropped 12% following the announcement of increased AI infrastructure spending plans, projected to reach $70–72 billion by 2025. The news, despite strong earnings and revenue growth, raised investor concerns about a potential AI bubble. CFO Susan Li's spending forecast led to a sharp decline in stock value post-earnings.
CEO Mark Zuckerberg defended the investment strategy, emphasizing the potential to repurpose infrastructure if AI development slows. Analysts are split, with some praising Meta's strong advertising performance, while others question the sustainability of such high capital expenditures.
Meta Shares Plunge 12% on AI Spending Concerns
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