Meta Shares Drop 6.5% As AI Spending Outlook Sparks Concern Among Investors

Benzinga

Meta reported Q3 revenue of $51.2 billion, beating expectations but warning of rising 2026 expenses due to heavy AI infrastructure spending. A $15.9 billion tax charge cut net income to $2.71 billion, and shares fell 6.5% in extended trading as investors questioned the payoff of Mark Zuckerberg’s AI strategy.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Meta said its expenses will rise sharply in 2026 due to continued heavy spending on AI infrastructure,

00:08sending its shares lower in extended trading, according to Bloomberg.

00:11Meta reported third-quarter net income of $2.71 billion,

00:14including a $15.9 billion non-cash tax charge tied to a new law enacted in July.

00:20Meta's third-quarter revenue rose to $51.2 billion,

00:23surpassing expectations driven by its advertising business.

00:25Companies said AI investments are improving ad targeting,

00:28but a slowdown in ad sales could undermine confidence in CEO Mark Zuckerberg's long-term AI strategy.

00:34Zuckerberg faces pressure to prove Meta's massive AI investments will pay off,

00:38even as the company trims costs and cuts 600 jobs from its AI unit to boost efficiency.

00:43Shares fell 6.5% in extended trading.

00:45For all things money, visit Benzinga.com.

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