Meta Faces Challenges Amid Rising AI Costs and Tax Charges
Meta Platforms recently reported its third quarter earnings, revealing a record revenue but significant losses due to a $16 billion one-time tax charge. Despite beating earnings expectations, shares dropped 9% as investors reacted to increased AI spending, projected to exceed $70 billion. CEO Mark Zuckerberg defended these investments, asserting future returns, while the company warned of higher expenses in 2026. Analysts remain cautious, with many predicting muted responses from investors following these mixed results. The future outlook indicates robust revenue growth, but rising costs continue to concern market participants.
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