Prediction: Meta's AI Spending Will Pay Off Bigger Than Wall Street Expects
The social media giant's soaring infrastructure budget has rattled investors. But its advertising business is already turning that spending into results.
Prediction: Meta's AI Spending Will Pay Off Bigger Than Wall Street Expects
Overview
Shares of social media giant Meta Platforms (NASDAQ: META) have fallen about 28% from their 52-week high near $796, trading about $577 as of this writing. The slide has come even as the company's core advertising business grows at its fastest pace in years.
So what's bothering investors?
Details
Spending. Meta now plans to spend between $125 billion and $145 billion on capital expenditures in 2026, up from about $72 billion last year. Most of it is going toward the computing power behind artificial intelligence (AI), and it has drawn the same doubt circling Meta's megacap peers: whether all that money will ever earn its keep.
Source
Originally published at www.fool.com.
