Facebook parent Meta spends more than it earns, and Wall Street is not happy with it

Mark Zuckerberg’s Meta Platforms warned of “notably larger” capital expenditures in 2026 as it ramps up artificial intelligence investments, including a massive buildout of data centers to fuel its pursuit of superintelligence. The announcement overshadowed a strong third-quarter performance, sending shares down 8% in after-hours trading. The parent company of Facebook and Instagram reported third-quarter revenue growth of 26%, surpassing Wall Street estimates. However, costs surged 32% in the same period, outpacing revenue gains and highlighting the financial strain of Meta’s AI push.A one-time charge of nearly $16 billion tied to U.S. President Donald Trump’s ‘Big Beautiful Bill’ crushed reported net income to $2.71 billion. Excluding the item, adjusted net income would have risen to $18.64 billion.