- Meta shares fell 11% after reporting a 28% revenue increase to $61bn but a 14% profit drop to $6bn, as investors reacted negatively to rising AI spending.
- Meta raised its AI spending forecast to $130bn-$145bn for the year, up from $125bn three months ago, with CEO Mark Zuckerberg emphasizing its core business benefits.
- Meta’s free cash flow hit a five-year low of $784m, with analysts comparing AI spending to past metaverse missteps due to unproven demand.
- Plans include selling AI models and tools to businesses, with Zuckerberg citing a 'very, very large opportunity' in API and productivity services.
- Microsoft reported strong quarterly results (sales up 18% to $90bn, profits up 31% to $36bn) and planned $175bn in capital spending for next year, mainly on AI.