Meta shares fall as frustration grows over AI spending plans

Meta shares declined after Mark Zuckerberg revealed the company will begin selling AI tools to other businesses, marking a new revenue stream aimed at addressing investor pushback over ballooning AI infrastructure spending. The announcement comes as Meta reported FY revenue of $201.0B, up 22.2% year-over-year, with a 30.1% net margin and $23.49 in diluted EPS — figures that show the core business remains highly profitable even as capital intensity rises.

The stock reaction suggests the market is less focused on top-line growth or margin health and more concerned with capital discipline: how much Meta will spend building out AI data centers and compute, and when — if ever — that spending converts into visible returns. Selling AI tools externally is Zuckerberg's answer to that skepticism, an attempt to reframe Meta's AI buildout as a platform business rather than a pure cost center supporting internal products like feed ranking and Llama models.

The tension for investors is straightforward: Meta's fundamentals (22.2% revenue growth, 30.1% net margins) remain strong by any historical standard, but the stock is trading on forward capex assumptions and the credibility of new monetization narratives rather than trailing results. Bulls will point to the profitability cushion and optionality of a new enterprise AI revenue line: bears will note that selling AI tools is unproven, competitive, and does nothing to change near-term spending levels that triggered the selloff in the first place. Watch for details on pricing, initial customers, and any updated capex guidance in coming Meta commentary.