Meta shares slide after raised AI spending forecast drives negative free cash flow

Meta Platforms shares fell as much as 9% to 17% from recent peaks as investors weighed surging artificial intelligence infrastructure outlays against solid digital advertising growth. The company lifted the low end of its full-year capital expenditure forecast to $135 billion to $145 billion, with quarterly capex hitting $34.91 billion and swinging free cash flow negative to -$2.12 billion. Meanwhile, third-quarter revenue climbed 26% year-over-year to $64.60 billion, beating consensus, while fourth-quarter revenue was guided to $73 billion to $76 billion. Results were also clouded by a $9.89 billion legal settlement charge and a $25 billion New Mexico court penalty.