The Bad PlaceUS Top News and Analysis | Is Meta's AI spending blitz working? The stock's next move depends on the answer
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Meta Platforms is riding a volatile rebound as investors scrutinize its massive AI spending, which could exceed $169 billion this year. After an early‑year surge, the stock fell 29 % before climbing 28 % again, buoyed by new AI‑related investments—including multibillion‑dollar deals with AWS, CoreWeave and Nebius, and the launch of the multimodal Muse Spark model designed to boost engagement and ad performance across Facebook, Instagram, WhatsApp, Threads and business tools. Analysts such as Morgan Stanley and Cantor Fitzgerald argue the market has over‑focused on cost rather than the emerging returns from LLM‑driven ad targeting, while Jim Cramer remains bullish on CEO Mark Zuckerberg’s talent and AI strategy. The upcoming earnings report will be pivotal in showing whether AI‑driven tools like Advantage+ and AI‑generated ads are translating into higher advertising revenue, especially as Meta trims roughly 10 % of its workforce to offset rising infrastructure expenses.
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