Meta Platforms shares fall 3% amid AI spending, $25B fine
Business
Meta Platforms, the Instagram parent, saw its shares drop about 3% today.
Even though its new AI app Muse is getting lots of attention, investors are nervous about how much Meta is spending on artificial intelligence.
Meta says $135B to $145B spend
Meta says it could spend up to $135 billion to $145 billion this year, which led to a $2.12 billion free cash flow deficit in the third quarter.
While some analysts think these investments might pay off in the long run by boosting ads, there is more for Meta to worry about: a judge just hit it with a $25 billion fine in a data-privacy case linked to Cambridge Analytica.
All this has left investors unsure about what is next for the company.