Meta Shares Plunge on Rising Concerns Over AI Spending Spree (1)

Meta Platforms Inc. Chief Executive Officer Mark Zuckerberg reignited fears that the historic levels of investment he’s making to catch up in the artificial intelligence race won’t pay off, a prospect that sent shares sliding after the company raised its spending outlook for the year.

The social media giant projected full-year capital expenditures of $125 billion to $145 billion, exceeding analysts’ estimates and marking a roughly 7.4% increase from the company’s previous projections in January. Meta said the increase is partly driven by conviction that its AI strategy is working, but the company is also dealing with “higher component ...