Meta shares slide as plan to spend billions more on AI spooks investors
Other tech giants Alphabet, Microsoft and Amazon also reported quarterly earnings on Wednesday.
Coverage by Political Leaning
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Notable Quotes
"I don't think we have a very precise plan for exactly how each product is going to scale or anything like that."
— Mark Zuckerberg , Executive
"We don't really know what the optimal size of the company will be in the future."
— Susan Li , Executive
"We own frontier models, we own the silicon [for chips], that really helps us stay head of the curve."
— Sundar Pichai , Executive
"We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs."
— Mark Zuckerberg , Executive
"The first quarter showed strong execution across its core ads and engagement initiative."
— Susan Li , Executive
"Investments in data centers are part of a massive gamble by Big Tech firms to win the AI race."
— J.P. Gownder , Academic
"higher component pricing and additional data center costs"
— Susan Li , Executive
Key People
Vice president and principal analyst at Forrester.
Mark Zuckerberg is the founder of Meta, the company formerly known as Facebook.
Sundar Pichai is the CEO of Alphabet Inc. and Google.
Susan Li is the chief financial officer of Meta.
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All Coverage
Other tech giants Alphabet, Microsoft and Amazon also reported quarterly earnings on Wednesday.
Meta reported strong Q1 2026 earnings, surpassing expectations, but announced a significant increase in capital expenditures for AI initiatives, leading to a stock decline.
Meta's announcement of increased AI investments raised investor concerns, causing a significant drop in share prices.
Meta's increased AI spending led to a 7% drop in shares, amid broader concerns over Big Tech's AI investments.
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