Meta Stock Loses $175 Billion After AI Expense Estimate Shakes Shareholders
Meta's stock fell 10%, losing $175 billion, due to a higher AI infrastructure spending forecast for 2026.Summary
Meta Platforms (META) experienced a significant stock decline of approximately 10% on Thursday, resulting in a market value loss of about $175 billion. This selloff was triggered by an increased capital expenditure forecast for 2026, projected to be between $125 billion and $145 billion, which is higher than the previous guidance. Despite exceeding Wall Street estimates for both revenue and profit in Q1 2026, the stock's performance was negatively impacted. The increased spending is attributed by CFO Susan Li to higher memory chip prices and additional data center costs related to artificial intelligence (AI) infrastructure. Analysts have reacted cautiously, with JPMorgan downgrading Meta and lowering its price target, citing intensifying AI competition and challenges in achieving returns. Although Meta reported strong revenue growth and net income, partly boosted by a tax benefit, the market's focus remains on the substantial AI-related capital expenditures, a pattern that has previously overshadowed positive financial results for the company.
(Source：BeInCrypto)