"Mark Zuckerberg reassured investors that the increased spending on AI would yield positive results, stating that Meta's algorithm changes have already led to a 10% increase in 'real time' spent on Instagram and an 8% rise in video engagement on Facebook."
"The revised capital expenditure forecast reflects a significant increase in Meta's commitment to artificial intelligence, with expectations now set between $125 billion and $145 billion for 2026, up from earlier estimates."
Meta Platforms increased its 2026 capital expenditure forecast by $10 billion, now estimating between $125 billion and $145 billion. This announcement led to a 7% drop in share price, despite strong first-quarter sales and profits. Investors are uneasy about the escalating AI spending among major tech companies, which impacts smaller rivals and the digital advertising market. Zuckerberg emphasized that algorithm changes are enhancing user engagement, with a 10% increase in time spent on Instagram and an 8% rise in Facebook video engagement.
Read at Business Matters
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