Meta Platforms Faces Post-Earnings Selloff Amid AI Spending Concerns
Meta Platforms, Inc. (META) shares tumbled 17% over two sessions following its Q3 earnings report, as investors reacted to a $16 billion tax charge and aggressive 2026 capital expenditure guidance. The selloff mirrors 2022's metaverse-driven volatility, but this time the focus is on AI infrastructure investments.
Unlike the speculative metaverse buildout, AI presents tangible near-term monetization potential. Management's commitment to scaling AI capabilities—despite margin pressure—signals a strategic play for long-term dominance in algorithmic intelligence. The market's knee-jerk reaction overlooks Meta's history of converting heavy R&D into profitable platforms.