Report
Meta Earnings Beat Masks AI Capex Surge and $25B Data Privacy Fine
Meta reported Q3 revenue ~$64.6B (beating estimates) but raised 2026 capex guidance to $135–145B for AI infrastructure and disclosed ~$825B in future commitments. A $25B data-privacy fine from a New Mexico judge (under appeal) adds legal risk. Shares fell 3–5%+.
TLDR
Meta's results crystallize investor fears that Big Tech's AI capex boom may outpace near-term returns, pressuring valuations despite revenue growth. The massive spending scale and negative free cash flow shift fuel sustainability debate. The $25B fine and capex guidance triggered broader tech and AI stock weakness, contributing to Nasdaq decline of ~2.6%.
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