- Meta Platforms stock dropped over 10% after its latest earnings report.
- Third-quarter revenue exceeded expectations, but earnings per share fell short due to a tax charge.
- Meta plans to raise capital spending to $70 billion–$72 billion in 2025 and expects even higher spending in 2026 for AI development.
- Increased costs include infrastructure, cloud expenses, and depreciation tied to AI investments.
- CEO Mark Zuckerberg emphasized strong progress in AI projects and noted infrastructure can be repurposed if needed.
Shares of Meta Platforms fell more than 10% on Thursday following the release of the company’s third-quarter earnings report. Despite beating revenue estimates, earnings per share missed expectations due to a one-time tax-related expense. The sharper decline came after the company disclosed plans for increased capital expenditures linked to its Artificial Intelligence (AI) initiatives this year and in 2026.
For 2025, Meta raised its capital expenditure forecast to between $70 billion and $72 billion, up from the prior range of $66 billion to $72 billion. The company’s Chief Financial Officer, Susan Li, stated, “Our current expectation is that capital expenditures dollar growth will be notably larger in 2026 than in 2025.” She added that overall expenses will rise faster in 2026, mainly due to infrastructure costs, including cloud services and equipment depreciation.
Mark Zuckerberg highlighted Meta’s commitments to AI during the earnings call, describing progress at the company’s AI research division and ongoing work on AI-powered glasses. He said, “Meta Superintelligence Labs is off to a great start, and we continue to lead the industry in AI glasses.” Zuckerberg expressed optimism about the technology’s future, stating that if the company achieves part of its AI goals, the coming years will be highly significant. He also mentioned a fallback option, noting that existing infrastructure can be adapted for other profitable uses if AI growth does not meet expectations.
In the current AI investment wave of 2025, Meta is among the biggest spenders alongside peers like Amazon, Microsoft, and Apple. The company has committed billions to hiring AI experts and expanding data centers to support demand. This aggressive investment has impacted earnings per share, raising concerns among investors about the near-term risks associated with the increased spending.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Ethereum’s Fusaka Upgrade Set for December 3 With PeerDAS Boost
- AdaptixC2 Framework Adopted by Russian-Linked Ransomware Groups
- XRP Might Reach a Trillion-Dollar Market Value by 2035
- OpenAI Codex Sees Major Update, 92% Engineer Adoption Rate
- Strategy Q3 Earnings Await S&P 500 Inclusion and Offers Update
