---
title: "Meta's massive spending evokes memories of the metaverse debacle that severely impacted its stock price"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/264479525.md"
description: "Meta Platforms Inc. has raised investor concerns about its past metaverse spending due to massive expenditures supporting artificial intelligence. Although the financial report shows key indicators exceeding expectations, capital expenditures are expected to reach $72 billion and will significantly increase before 2026. CEO Mark Zuckerberg stated that this is the right strategy, but Meta's stock price has fallen nearly 17%, with a market value evaporating by $307 billion, and investors' doubts about its spending plans have resurfaced"
datetime: "2025-11-05T17:20:43.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/264479525.md)
  - [en](https://longbridge.com/en/news/264479525.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/264479525.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/264479525.md) | [繁體中文](https://longbridge.com/zh-HK/news/264479525.md)


# Meta's massive spending evokes memories of the metaverse debacle that severely impacted its stock price

Meta Platforms Inc. has made substantial expenditures to support its artificial intelligence ambitions, which has led some investors to recall the massive metaverse spending that severely impacted its stock price a few years ago.

The parent company of Facebook reported last week that its key metrics exceeded expectations. However, Wall Street's focus is on capital expenditures, with the company stating that capital spending could reach as high as $72 billion this year and will "significantly increase" by 2026. During the earnings call, CEO Mark Zuckerberg downplayed concerns about potential overspending on projects like the superintelligence lab, stating that "proactively building capabilities is the right strategy."

Currently, Meta's stock is experiencing its worst four-day decline since November 2022, having fallen nearly 17%, resulting in a market value loss of $307 billion. Notably, the sell-off in 2022 was also driven by investor skepticism regarding its spending plans, ultimately leading to a 77% drop in stock price from its peak in 2021.

"This feels like Meta is repeating its past mistakes by over-investing in frivolous projects or areas lacking reasonable return expectations," noted Tiffany Wade, senior portfolio manager at Columbia Threadneedle Investments. "Investors are losing patience."

Of course, even after the recent decline, Meta's stock has still risen 7.5% this year. This is because prior to this, significant investments in artificial intelligence were not viewed as a negative factor. In fact, companies have seen returns from this, as it indicates they are maintaining competitiveness in an evolving technological landscape.

Zuckerberg has long claimed that artificial intelligence is driving improvements in ad targeting and user engagement. However, as spending continues to rise without clearer signs of returns, investors are increasingly uneasy about these expenditures

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