Meta Slides Nearly 8% as AI-Spending Doubts Ignite Treasury Rally
META sits 23% above its 52-week low of $520.26.
Summary
Meta shares dropped nearly 8% and dragged the Nasdaq down more than 2% as investors questioned whether the AI buildout can sustain its current spending pace. The move follows the Q3 report, where revenue rose 26% to $64.6B but a $9.89B legal charge cut operating income 37%, and the newly disclosed Class C non-voting stock plan meant to fund AI expansion. The reaction is broad, not Meta-specific: Treasury yields collapsed as money ran to safety, with the 10-year falling 19.3 basis points to 4.953%, its biggest one-day drop since March 2023. That tells you the market is repricing AI capex risk across the complex, and Meta's equity-raise vehicle is now part of that story rather than a standalone governance item. Watch whether the AI-spending anxiety persists into next week's Fed meeting, where rate-hike odds have already collapsed to 7.2% from 27.7% a week ago.
At the time of this announcement, META was trading at $641.21 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.6T. The 52-week trading range was $520.26 to $779.82. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.