Meta shares fall amid rising AI investments

Meta faced heavy investor pressure after its shares fell 7% in extended trading, following an announcement that it would significantly increase spending on artificial intelligence projects. The company raised its capital expenditure outlook to as high as $145 billion, citing underestimated computing needs and an unclear roadmap for product scaling.

Meanwhile, Alphabet, Microsoft, and Amazon showed comparatively stronger investor confidence as their AI investments began reflecting in business growth. Alphabet’s stock rose 7% after strong cloud revenue and profits, Microsoft reported steady AI-driven growth despite lower cash flow, and Amazon highlighted strong cloud performance and chip investments, even as all firms continue massive AI spending.