Meta’s AI Spending Spree Weighs on Stock Performance Amid Tech Sector Slump
Meta Platforms Inc. shares have tumbled 13% over the past six months, with the stock hitting a low of $620 after peaking at $790 in August. CNBC's Jim Cramer attributes the decline to the company's aggressive AI investment strategy, which includes a planned $600 billion expenditure by 2028. While this spending aligns with broader tech sector trends, Meta's outsized commitment has spooked investors.
The Zuckerberg-led company's push to develop personal superintelligence technology represents a high-risk, high-reward proposition. Success could deliver substantial returns, but the uncertain trajectory of AI development continues to cloud the outlook. Meta's stock performance mirrors earlier patterns seen at Amazon and Microsoft during their own heavy AI investment phases.
