Meta shares fell sharply in after-hours trading after the company outlined a much larger artificial intelligence spending plan and reported a mixed second quarter. Investors pushed the stock down more than 8% as the broader market remained uneasy about high-cost AI expansion.
The company said it expects to invest roughly $130 billion to $145 billion in AI this year. That scale of spending stood out immediately, especially as markets continue to debate how quickly major tech companies can turn heavy AI outlays into stronger revenue and profit growth.
Meta, the parent company of Facebook, Instagram and WhatsApp, also delivered results that were described as mixed. The limited details available indicate the company fell short of at least some Wall Street expectations, adding to the pressure on the stock after the report.
The reaction shows how sensitive investors remain to the balance between growth and spending in big tech. Even with strong interest in AI, a massive capital commitment can unsettle the market when earnings do not clearly remove concerns about timing, returns and near-term performance.
