Meta Raises $30B Bonds, AI Spending Spurs Investor Sell-Off

Meta reported a record $51.24 billion in Q3 2025 revenue, up 26% year-over-year, driven by strong advertising demand and increased user engagement across its platforms. However, net income plummeted 83% to $2.71 billion, largely due to a one-time $15.93 billion tax charge, alongside surging operating costs driven by aggressive AI-related hiring and infrastructure investments. The company announced plans to significantly increase capital expenditures, raising its 2025 forecast to $70–72 billion and anticipating even larger spending in 2026, including a $30 billion bond offering—the largest corporate debt sale of the year—to fund AI infrastructure. Despite strong revenue growth and a mostly bullish Wall Street outlook with 85% of analysts recommending buy, Meta’s stock dropped over 11% post-earnings, reflecting investor concerns over the sustainability and returns of its heavy AI investments. Regulatory pressures are also mounting, with fines and investigations in both the EU and U.S. related to privacy and antitrust issues. Meta’s significant AI spending positions it alongside competitors like Google and Nvidia, but questions remain about long-term profitability and market risk.