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Meta Platforms shares plunge over 10% as AI spending drives earnings miss
Meta Platforms reported quarterly results that missed analyst expectations, sending its shares down more than 10%. Earnings per share came in at $6.18 versus the forecast $7.22, and revenue reached $60.8 billion, short of the $63.15 billion market estimate. The company cited a rapid rise in artificial‑intelligence costs, with expenses climbing 55% to $42 billion and free cash flow collapsing to $784 million from $8.55 billion a year earlier. Meta kept its capital‑expenditure outlook at $130‑145 billion for the year while continuing to invest heavily in AI infrastructure.
The weak outlook erased roughly $18 billion from CEO Mark Zuckerberg’s net worth, which is largely tied to his Meta holdings. Zuckerberg said the firm will channel computing power toward new personal AI agents that could serve billions of users, underscoring Meta’s belief that AI will become a core growth driver despite the near‑term financial strain.
Entities
Grant Private Wealth Management Inc. · Mark Zuckerberg · Meta Platforms · Meta Platforms Inc. · Robert Kimmitt · Sfm LLC
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Meta reported earnings per share of $6.18, below the expected $7.22. www.fool.com · todaynews.co.uk
- [● 2 SOURCES] Meta's quarterly revenue was $60.8 billion, below analysts' forecast of $63.15 billion. www.fool.com · todaynews.co.uk
- [○ 1 SOURCE] Meta kept its capital‑expenditure forecast for the year at $130‑145 billion. todaynews.co.uk
- [○ 1 SOURCE] Mark Zuckerberg's net worth dropped $18 billion after the share decline. www.fool.com
- [● 2 SOURCES] Meta's free cash flow fell to $784 million, down from $8.55 billion a year earlier. www.fool.com · todaynews.co.uk
- [● 2 SOURCES] Meta Platforms shares fell more than 10% after its earnings report. www.fool.com · todaynews.co.uk
- [○ 1 SOURCE] Meta's AI‑related expenses rose 55% to $42 billion in the quarter. todaynews.co.uk
- [○ 1 SOURCE] Zuckerberg said Meta will develop personal AI agents for billions of users. todaynews.co.uk