{"id":891308,"date":"2026-10-22T23:16:09","date_gmt":"2026-10-22T23:16:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/891308\/"},"modified":"2026-10-22T23:16:09","modified_gmt":"2026-10-22T23:16:09","slug":"meta-stock-falls-7-as-ai-spending-fears-return","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/891308\/","title":{"rendered":"Meta stock falls 7% as AI spending fears return"},"content":{"rendered":"\n

Meta (META<\/a>) stock closed out the trading day Thursday down 7% on, despite reporting better-than-anticipated Q3 revenue<\/a> results Wednesday, as AI bubble fears remerged across Wall Street. <\/p>\n

Investors <\/a>pulled back on semiconductor and other AI stocks<\/a> across the board on questions about whether massive investments in AI data centers will pay off in the long run. <\/p>\n

Meta raised the lower end of its capital expenditure estimates to between $135 billion and $145 billion from $130 billion and $145 billion.<\/a> The company also has $825 billion in various spending commitments related to cloud capacity arrangements, energy service agreements, and consumer hardware products.\u00a0 <\/p>\n

NasdaqGS – Nasdaq Real Time Price \u2022 USD <\/p>\n

648.85 -48.67 (-6.98%) <\/p>\n

At close: 4:00:01 p.m. EDT <\/p>\n

646.40 -2.45 (-0.38%) <\/p>\n

After hours: 7:14:12 p.m. EDT <\/p>\n

Despite Wall Street’s reaction to Meta’s earnings, analysts were largely bullish on the company’s outlook, owing to its prospects for its Muse AI agent and models. <\/p>\n

CEO Mark Zuckerberg repeatedly pointed to Muse as a source of growth potential during the company’s earnings call, saying “Muse will be highly profitable over multiple years,” as long as compute efficiency in AI systems continues to improve. <\/p>\n

Read more: Meta’s Muse says it can manage your money. Should you let it?<\/a> <\/p>\n

Meta posted an all-time high revenue of $64 billion in the quarter, well ahead of the $63.3 billion analysts anticipated. GAAP earnings per share came in at $3.83 versus expectations of $3.56, but would have been $7.40 without legal charges related to the company’s teen mental health settlement. <\/p>\n

The company also announced it will issue new non-voting Class C shares to all Class A stockholders<\/a>, effectively creating a 2-for-1 stock split. The move is meant to ensure Zuckerberg stays in California and retains voting control of the company if the state’s Proposition 40 passes on Election Day. <\/p>\n

Prop. 40 calls for a 5% tax on taxpayers with assets over $1 billion. <\/p>\n

Read more: What to know about the billionaire tax on the California ballot<\/a> <\/p>\n

Ahead of Meta’s earnings report, a New Mexico judge ordered the company to pay $25 billion<\/a> in connection with the state’s consumer-harms case against the social media giant. <\/p>\n

\"A<\/a> Sign up for Yahoo Finance’s Week in Tech newsletter. \u00b7 Yahoo Finance <\/p>\n

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley<\/a>. <\/p>\n