Economy · 12 d ago
Meta and other AI stocks tumble as investors question the cost of the AI buildout
Meta shares, Thursday
8 % drop
Meta fell eight per cent on Thursday, its biggest drop since July, after it said it would sell a new class of non-voting shares to fund AI spending.
Arild Vågen · CC BY-SA 4.0 · Wikimedia Commons
Nvidia dropped four per cent, and Lam Research fell 10 per cent after its results. The Nasdaq was on track for its largest decline in four months.
What we know
- Meta spending forecast: US$135B to US$145B
- Third-quarter free cash flow was negative
Not yet
- When AI spending will pay off
Meta raised the low end of its yearly spending forecast to US$135 billion and reported its first cash burn in more than a decade.
And us?
Why it matters in Canada
The Toronto Stock Exchange was down close to one per cent on Friday as the AI worries carried over.
