Meta stock drops 12% as heightened AI spending overshadows strong third-quarter results

Core Viewpoint - Meta Platforms' stock experienced a decline of over 12% due to skepticism regarding the effectiveness of its aggressive artificial intelligence spending plans, despite reporting strong financial results [1]. Group 1: Financial Guidance - Meta has raised its capital expenditures guidance for 2025 to a range of $70 billion to $72 billion, up from the previous guidance of $66 billion to $72 billion [2]. - The increase in capital expenditures reflects the company's efforts to compete in the development of advanced AI tools [2]. Group 2: CEO's Perspective - CEO Mark Zuckerberg expressed confidence in the returns from the company's core business, stating that this confidence supports the decision to invest more aggressively in AI [3]. - Zuckerberg emphasized the importance of preemptively building capacity to prepare for the emergence of superintelligence, positioning Meta for significant opportunities in the future [3].