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Meta shares fall as investors express frustration over AI spending plans

Published July 30, 2026 at 6:02 AM UTC

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Meta Platforms' shares have declined following the company's announcement of substantial investments in artificial intelligence (AI). The tech giant reported a 55% increase in AI-related expenses, reaching $42 billion, which outpaced its 28% revenue growth. This surge in spending has raised concerns among investors about the company's profitability and the long-term returns on its AI investments. Despite these concerns, Meta's CEO, Mark Zuckerberg, remains optimistic about the potential of AI to drive future growth and innovation. The company's capital expenditures for 2026 are projected to total between $130 billion and $145 billion, reflecting its commitment to AI development. However, this aggressive spending strategy has led to a significant drop in Meta's stock price, highlighting the market's apprehension regarding the rapid escalation of AI-related costs.