Yahoo Financeยท2025-11-10 11:15Core Insights - Meta Platforms' shares have dropped by 17% following the release of its third-quarter earnings, primarily due to concerns over spending [1] - The company's aggressive investments in the metaverse have led to significant financial strain, prompting investor skepticism [3][4] - Meta is shifting its focus from the metaverse to artificial intelligence (AI), with substantial capital expenditures aimed at enhancing its AI capabilities [6][8] Spending and Financial Profile - Meta's spending on selling, general, and administrative functions, as well as research and development, has sharply increased, resulting in deteriorating free cash flow [3] - The company's capital expenditures are expected to continue rising as it invests in infrastructure and talent acquisition for its AI initiatives [7][8] Strategic Shift - While Meta maintains some interest in the metaverse, its primary focus has transitioned to AI, with CEO Mark Zuckerberg outlining a comprehensive AI roadmap during the latest earnings call [6] - Meta has made significant investments in AI, including a $14.3 billion stake in Scale AI and the establishment of Meta Superintelligence Labs to enhance its engineering and research capabilities [9]