Meta's Stock Plunges 15.16% as AI Infrastructure Costs Strain Balance Sheet

The share price fell to its lowest level since May 2025 today, with an intraday decline of 1.88%.

Meta’s stock has plummeted 15.16% over three days, extending a downward trend linked to escalating capital expenditures for artificial intelligence infrastructure. The company’s $71 billion AI-related spending in 2025—a $2 billion increase from earlier projections—has intensified concerns over short-term financial strain. A $30 billion investment-grade bond offering in 2025, the largest of the year, reflects Meta’s pivot from a net cash position to net debt, raising liquidity risks. Meanwhile, Q3 earnings revealed a $15.9 billion deferred tax charge and a 6% post-earnings drop, underscoring volatility as investors weigh the monetization potential of experimental projects like the Meta AI assistant and Vibes video generator against rising costs.

Analysts highlight a broader industry shift toward capital-intensive AI development, with Meta’s balance sheet increasingly strained by competitive pressures. Unlike peers such as Google and Nvidia, which have monetized AI infrastructure, Meta’s Reality Labs division reported over $17 billion in annual losses in 2025, casting doubt on its ability to offset AI spending with near-term revenue. Despite 33 out of 42 analysts recommending a “Buy” rating in late 2025, with an average $847 price target, the stock’s 30% upside remains contingent on delivering AI-driven growth. Legal uncertainties, including a $32.8 million data privacy settlement in Nigeria, further cloud investor confidence, as Meta navigates a delicate balance between innovation and financial sustainability in the AI arms race.