Meta's $134B AI Bet Sparks Investor Backlash as Stock Plunges 7%

Meta's stock plunged over 7% on Thursday, erasing more than $134 billion in market value after the company announced massive new AI investments, despite reporting quarterly results that beat expectations. Meta reported third-quarter revenue of $64.60 billion, up 26% year-over-year and above analyst forecasts, with earnings per share also exceeding projections. However, the company raised its 2026 capital expenditure forecast to $140 billion and revealed future financial commitments totaling $825 billion, sparking investor concerns about AI profitability. The company's free cash flow turned negative at $2.12 billion in the third quarter, compared to a $10.63 billion surplus a year earlier. Meta also announced a new class of non-voting shares to raise capital without diluting Zuckerberg's control, while cutting staff by 15% and facing continued losses at its Reality Labs division.