Meta under pressure amid aggressive spending concerns

3 months ago

Denita Sakova

"All right, let's get to a MAG 7 name Meta. Meta has been the story of the last 24 hours. Now it's down nearly 12%, having fallen 14% in earlier trading due to concerns over AI spending. The Facebook parent's third quarter earnings and outlook were noted, but Mark Zuckerberg warned that Meta Platforms will need to spend even more aggressively. There's also news that they aim to sell at least 25 billion of investment grade bonds, potentially their largest in 2025, while multiple analyst downgrades add further pressure on the stock."

Meta is facing significant headwinds as aggressive spending plans and substantial bond issuance concerns, combined with analyst downgrades, put additional pressure on its stock.

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