Meta shares drop 7% as company raises AI spending forecast to $145 billion

Meta shares fell over seven percent on Wednesday after the company raised its 2026 capital expenditure forecast to between $135 billion and $145 billion, signaling an aggressive continued investment in artificial intelligence. The announcement also included a new class of nonvoting stock, intended to fund acquisitions and other expenses. The spending increase reflects Meta's confidence in its AI progress, particularly the new Muse agent, which CEO Mark Zuckerberg said has attracted over 10 million users in its first six weeks. The company reported third-quarter revenue of $64.6 billion, up 26 percent year-over-year, and earnings of $3.83 per share, both exceeding analyst expectations. Meta's results open a tech earnings season focused on AI spending and returns, with Alphabet, Microsoft, and Amazon reporting next week. The company's future spending commitments rose to $825 billion, while headcount fell 15 percent year-over-year as it cuts costs elsewhere to fund AI infrastructure.