Meta Shares Plunge 16.54% Amid Regulatory Hurdles, Rising AI Costs

The share price fell to its lowest level since May 2025 today, with an intraday decline of 1.83%.

Meta’s stock has tumbled 16.54% over four consecutive days, driven by regulatory setbacks in France and India, rising capital expenditures for AI, and insider selling. On November 4, French regulators ruled that Meta’s algorithms discriminate in job ads, prompting the company to reject the decision and face potential fines or operational changes. Meanwhile, India’s appeals tribunal upheld a $25.4 million fine against Meta for WhatsApp data-sharing practices, despite overturning a data-sharing ban. The company also announced a $70–72 billion 2025 capex budget for AI, raising concerns about short-term profitability amid declining free cash flow. Executives, including CEO Mark Zuckerberg, have sold millions of shares over six months, signaling internal caution.

Analysts remain divided between long-term AI optimism and near-term risks. While Q3 revenue rose 26% to $51.24 billion, driven by advertising growth, Reality Labs’ $4.4 billion loss highlights structural challenges. Regulatory scrutiny is intensifying globally, from the EU’s Digital Services Act to U.S. antitrust probes, complicating Meta’s expansion. The stock’s trajectory hinges on balancing AI-driven innovation with fiscal discipline, as 2026’s capex plans and metaverse profitability remain uncertain. For now, investor sentiment reflects skepticism over whether aggressive spending will yield returns or deepen financial strain.