Meta shares tumble as soaring AI costs rattle investors

Meta Platforms’ cost to insure its debt against default hit an all-time high on Oct. 22 as investors worried the company’s rising AI spending will force it to rely more on external funding. Meta shares fell more than 7%, putting the firm on track to lose about $114 billion in market value if the decline persists. The selloff followed better-than-expected results and a strong forecast, underscoring concern about spending that pushed the Facebook and Instagram owner to its first cash burn in more than a decade. On Oct. 21, Meta lifted the low end of its capex outlook by $5 billion to a $135 billion–$145 billion range.