Meta Falls as Investors Balance Muse Growth with Rising AI Costs
- On Thursday, Meta Platforms shares fell about 3% in premarket trading as investors weighed the benefits of the company's fast-growing AI agent business against mounting costs of its ambitious AI expansion.
- Meta raised its 2026 capital expenditure forecast to between $135 billion and $145 billion, with future spending commitments including energy agreements and computing deals climbing to $825 billion.
- CEO Mark Zuckerberg touted the success of Muse, noting more than 10 million people in the United States and Canada used the AI assistant during its first six weeks.
- Separately, a New Mexico judge ordered Meta to pay a $25 billion penalty in a Cambridge Analytica privacy case, while the company announced a new class of non-voting shares.
- Deutsche Bank analyst Benjamin Black cited "positive thesis creep," suggesting investors increasingly view Meta's computing infrastructure spending as a revenue-generating asset rather than a cost burden.
26 Articles
26 Articles
Meta shares fell more than 8% on Thursday as investors reacted negatively to another increase in the technology giant’s forecast for investment in artificial intelligence and its plans to issue a new class of shares to finance the massive spending. The sell-off comes despite better-than-expected quarterly results and a solid business outlook for the company. The market reaction reflects growing concerns about the cost of the global race in artif…
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Meta Shares Drop as Investors Weigh Muse AI Growth Against Soaring Costs
Shares of Meta Platforms fell more than 5% in early trading on Thursday as investors weighed the growth potential of its artificial intelligence business against ... The post Meta Shares Drop as Investors Weigh Muse AI Growth Against Soaring Costs first appeared on [your]NEWS.
Meta's share price plunged on Thursday, dragging down virtually the entire US technology sector. The fierce market reaction came after the company said it planned to invest "hundreds of billions of dollars" in artificial intelligence in the coming years. The widespread sell-off is also being exacerbated by rising tensions in the Middle East, the Financial Times reported.
Meta Credit Risk Gauge Hits Fresh High on AI Spending Plans
A gauge of Meta Platforms Inc.’s credit risk surged to a fresh record Thursday and its bonds sank, as plans to ramp up capital spending reignited fears that tech giants will issue more debt for AI buildout in an already saturated market.
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