Meta Shares Plunge 11% Amid Increased AI Investment and Elevated Capital Expenditures

The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.

Meta Stock Experiences Sharp Decline Amid Elevated AI Spending

Shares of Meta Platforms Inc. plummeted more than 11% in a single trading session, marking the company’s largest one-day loss since October 2022. The decline reflects mounting investor concerns over Meta’s increased capital expenditures focused on artificial intelligence development despite strong quarterly financial results. !-- wp:paragraph -->

Meta Raises 2025 Capex Guidance to Fuel AI Ambitions

Meta has revised upward its 2025 capital expenditure outlook to a range of $70 billion to $72 billion, up from the prior guidance of $66 billion to $72 billion. This adjustment underscores the company’s aggressive investment strategy to expand its AI capabilities amid intensifying competition in the technology sector. !-- wp:paragraph -->

“It’s pretty early, but I think we’re seeing the returns in the core business,” said CEO Mark Zuckerberg during the earnings call. “That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.”

Zuckerberg further highlighted Meta’s proactive approach to building infrastructure for future superintelligence, positioning the company for a generational shift in multiple large-scale opportunities. !-- wp:paragraph -->

Context of AI Spending in the Tech Industry

Meta’s increased capital allocation towards AI aligns with broader industry trends. Alphabet recently raised its own capital expenditure forecast to $91 billion to $93 billion, while Microsoft anticipates accelerated spending growth this fiscal year. !-- wp:paragraph --> Earlier in 2025, Meta made a significant strategic investment by acquiring a 14.3% stake in AI startup Scale AI and appointed its CEO, Alexandr Wang, to lead the company’s Superintelligence Labs initiative alongside former GitHub CEO Nat Friedman. Additionally, Meta has secured multiple cloud partnerships to support its expanding AI infrastructure. !-- wp:paragraph -->

Q3 Financial Performance Highlights

For the third quarter, Meta delivered adjusted earnings of $7.25 per share on revenues of $51.24 billion, exceeding Wall Street consensus estimates. The company’s revenue rose 26% year-over-year, demonstrating robust core business growth despite the backdrop of heavy AI-related investments. !-- wp:paragraph --> The quarter also included a one-time tax charge of $15.93 billion, attributable to the implementation of the One Big Beautiful Bill Act enacted earlier this year. !-- wp:paragraph -->

FinOracleAI — Market View

Meta’s aggressive capital spending on AI development signals a long-term strategic commitment that could position the company advantageously in the next wave of technological innovation. However, the near-term market reaction reflects investor caution regarding the scale and timing of returns from such elevated investments. !-- wp:paragraph -->

• Opportunities: Meta’s early investment in superintelligence infrastructure may secure leadership in emerging AI-driven markets.
• Risks: Elevated capital expenditures may pressure margins and cash flow if AI monetization timelines extend beyond investor expectations.
• Competitive Landscape: Similar spending increases by Alphabet and Microsoft indicate an intensifying race for AI dominance.
• Regulatory and Tax Impact: Significant one-time tax charges could affect short-term profitability metrics.

Impact: Meta’s stock drop reflects investor skepticism over the sustainability of elevated AI spending despite strong earnings, underscoring the balance between innovation investment and near-term financial performance.