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Meta’s Aggressive AI Spending Echoes Metaverse Concerns, Spooking Investors
Meta’s Aggressive AI Spending Echoes Metaverse Concerns, Spooking Investors
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Meta Platforms' $72 billion AI investment plan has triggered a 17% stock plunge—its steepest decline since 2022—as investors draw parallels to its costly metaverse pivot. The absence of a cloud infrastructure business to monetize AI tools exacerbates skepticism, with Columbia Threadneedle's Tiffany Wade noting "it feels like overspending without proof of ROI."
BNP Paribas analyst Stefan Slowinski highlights Meta's persistent reliance on ad revenue, underscoring its failure to diversify beyond Core businesses. The selloff mirrors 2022's pattern when metaverse expenditures eroded confidence, suggesting markets remain wary of speculative tech bets lacking immediate monetization pathways.
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