Meta shares slide as it hikes AI spending forecast, youth social media backlash (nypost.com)

Meta Platforms has raised its annual capital spending forecast to between $125 billion and $145 billion, significantly increasing its investment in artificial intelligence infrastructure despite facing a potential backlash from youth social media usage and legal challenges. The company’s stock fell over 6% following this announcement, driven by investor concern over rising expenses and ongoing scrutiny regarding children's safety on social media platforms. CEO Mark Zuckerberg emphasized the importance of integrating AI into Meta's operations, indicating that the investment is essential for developing new technologies and promoting efficiency within the workforce. In addition to the spending forecast, Meta’s first-quarter revenue of $56.31 billion surpassed expectations, and the company remains on track to become the largest online advertiser, overtaking Alphabet with projected ad revenue of $243.46 billion for the year. Amid fierce competition from platforms like TikTok and others, Meta is also actively rolling out AI-driven tools and custom chips to enhance its advertising services. However, analysts express mixed feelings about its financial strategy, citing elevated spending without proportional cuts in operating costs. As Meta navigates these challenges, its commitment to AI development remains pivotal for sustaining growth and addressing legal implications.