Meta Investors Have Laser-Focus on Capex After Microsoft Letdown
- Facebook parent already raised spending forecast this year
- Investors are anxious to see AI investments start to pay off
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Meta Platforms Inc. investors will be hoping it can do a better job than Microsoft Corp. and Alphabet Inc. in convincing Wall Street that lofty spending on artificial intelligence will be worth it.
Wall Street is taking a more skeptical view of how much is being spent on AI by tech firms and when it will start to pay off in terms of improved growth and profitability. The Facebook parent already irked investors in April by hiking its spending forecast above estimates. Microsoft shares slid 1% on Wednesday after it reported slower growth in its cloud computing unit and said capital expenditures would increase again in the next fiscal year.