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News  ›  Investing.com

Meta Platforms Selloff Exposes AI Capex Risk Despite Non-Cash Tax Hit

Investing.com Logo Investing.com By Dave Kovaleski
Meta Platforms Selloff Exposes AI Capex Risk Despite Non-Cash Tax Hit

Meta Platforms experienced a significant stock drop after Q3 earnings, primarily due to concerns about aggressive AI spending and a massive one-time tax charge of $15.93 billion. The company raised capital expenditure guidance and plans substantial investments in AI infrastructure.

Insights
META   negative

Stock dropped 13% due to concerns about high AI spending, continued Reality Labs losses, and uncertainty about return on investment for AI ventures