Meta Platforms shares dropped 3% following investor concerns over massive artificial intelligence spending and a record $25 billion fine related to the Cambridge Analytica data-privacy case. The company expects capital expenditures to reach between $135 billion and $145 billion this year, contributing to a $2.12 billion free cash flow deficit in the third quarter. Despite these financial pressures, Meta launched a new AI application named 'Muse'.
Quarterly revenue beat analysts' expectations, but earnings fell short, while free cash flow turned negative and the cost of insuring the company's debt hit a record high.
Read the full story