Meta shares slide as plan to spend billions more on AI spooks investors
Meta's shares dropped 7% after the company announced it would increase its AI spending to up to $145 billion, spooking investors concerned about rising costs and uncertain returns. While Alphabet, Microsoft, and Amazon also reported large AI expenditures, Alphabet's stock rose 7% due to clear gains in cloud growth and profitability tied to AI adoption. Meta executives acknowledged the difficulty in predicting AI's impact on products and workforce, with potential job reductions as AI boosts employee productivity.
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Meta shares slide as plan to spend billions more on AI spooks investorsImage source, EPAByKali HaysTechnology reporterPublished29 April 2026Updated 7 hours agoMeta took the brunt of investor concerns on Wednesday over how the biggest US tech firms are spending massive sums on artificial intelligence (AI).Shares in the company, which owns Facebook and Instagram, dropped 7% in extended trading, after saying it would spend billions more on AI projects than it had initially planned.Meta, Google-owner Alphabet, Microsoft, and Amazon all reported their quarterly earnings at the same time.
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