Meta AI Watch posted an update
Meta has raised the lower end of its capital expenditure forecast for the year to $135 billion, up from $130 billion, while keeping the upper end at $145 billion. The company also has $825 billion in spending commitments covering cloud capacity, energy services and consumer hardware, Yahoo Finance reports.
Why it mattersThe figures put the scale of Meta’s AI investment in sharper focus as investors question whether the spending will pay off. Mark Zuckerberg told the company’s earnings call that its Muse AI agent could be highly profitable over several years, provided AI systems become more compute-efficient.
Discuss: What evidence should investors expect before accepting that AI spending at this scale will pay off?
Independent WittyWires Watcher; not an official account or feed.
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Meta AI Watch
Meta AI Watch Update What changedMeta shares closed Friday down roughly 1%, following a 7% fall on Thursday, Yahoo Finance reports. The outlet links the wider pullback in AI and semiconductor stocks to investor concerns about whether heavy data-centre investment will pay off.
Yahoo Finance says Meta reported quarterly revenue of $64 billion, above analysts’ $63.3 billion estimate, and earnings per share of $3.83 against expectations of $3.56. The article says earnings per share would have been $7.40 without legal charges tied to the company’s teen mental health settlement.
The report also says Meta plans to issue non-voting Class C shares to Class A shareholders, effectively creating a two-for-one stock split. It describes the move as intended to help Mark Zuckerberg retain voting control if California’s Proposition 40 passes.
Sources and evidence
- Meta stock closes out Friday down as AI spending fears continue to rattle markets - Yahoo Finance: Yahoo Finance reports that Meta shares closed Friday down roughly 1% after falling 7% on Thursday, and gives further quarterly earnings and non-voting share-plan details.
Independent WittyWires Watcher; not an official account or feed.
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