Meta’s AI Spending Plan Triggers Stock Selloff, Wall Street Cuts Targets
Meta Platforms Inc. shares plunged more than 11% after CEO Mark Zuckerberg outlined aggressive AI infrastructure spending plans through 2026. The market reaction was swift and severe, reflecting investor concerns about rising costs without immediate revenue upside.
"We build infrastructure to meet what we think are aggressive assumptions, then keep seeing more demand," Zuckerberg said, drawing parallels to previous expansion cycles. The CEO acknowledged potential overcapacity risks but suggested excess compute power could be absorbed by internal teams and external partners over time.
Wall Street analysts wasted no time adjusting their outlooks. BofA Global Research slashed its price target from $900 to $810 while maintaining a Buy rating. KeyBanc similarly reduced its target, signaling broader skepticism about Meta's capital-intensive AI roadmap.
