History Suggests That You'll Regret Not Buying This Struggling Tech Stock
Meta’s share performance has been uneven among the “Magnificent Seven,” with Tesla down 18.8% and Meta down 1.2% year-to-date through Sept. 10, while only Meta and Tesla were in the red for the group at that point. The article attributes Meta’s struggles mainly to heavy AI spending and ongoing regulatory pressure. Meta is slated to spend $130 billion to $145 billion on AI-related projects, and in Q2 it spent $31 billion, contributing to a drop in free cash flow from $13.2 billion in Q1 to $1.7 billion in Q2. Regulatory concerns include a proposed settlement of up to $18 billion over claims its apps were designed to be addictive and harmed teen mental health. Meta also launched “Muse,” a more consumer-focused personal AI agent, and the stock jumped more than 6% after-hours on Sept. 8.




