Meta Investors ‘Losing Patience' With AI Spending

Core Viewpoint - Meta's current spending on artificial intelligence is drawing comparisons to its previous investments in the metaverse, which negatively impacted its stock performance in 2022 [2][4][5]. Financial Performance - Meta's earnings exceeded expectations, but investors are focused on capital expenditures, projected to reach $72 billion this year and potentially increase in 2026 [2][3]. Stock Performance - Meta's stock has experienced its worst four-day decline in three years, dropping nearly 17% and erasing $307 billion in market value [4]. Investor Sentiment - Investors are expressing concerns about Meta's spending strategy, reminiscent of past overspending on projects perceived as lacking clear returns [5][6]. Operational Losses - Reality Labs, responsible for Meta's metaverse initiatives, is incurring operating losses exceeding $4 billion per quarter, with total expenditures surpassing $60 billion since 2020 [6]. AI Strategy - Meta's AI investments are primarily for internal use, lacking the clear revenue pathways seen in competitors like Microsoft, Google, and Amazon [6][7].