Meta stock plunges after executives forecast “notably larger” capital spending on AI, erasing billions from CEO’s net worth and shaking investor confidence.
A brief comment from Meta executives has erased $29 billion from the fortune of CEO Mark Zuckerberg, following a sharp drop in the company’s share price linked to its latest artificial intelligence investment plans.
The social media giant’s stock tumbled after it announced it would be making “notably larger” capital expenditures in 2025, primarily to accelerate development of AI infrastructure, including large-scale data centers. The two-word phrase, delivered during Meta’s quarterly earnings call, spurred investor alarm and set off one of the biggest one-day declines in Zuckerberg’s wealth.
Meta’s share price slid from $756.13 to as low as $637.14 on October 29, 2025, wiping out tens of billions in market value in the immediate aftermath. The drop continued over subsequent days as traders and analysts weighed the implications of the spending spree, prompting a re-evaluation of Meta’s short-term profitability.
According to Bloomberg, Zuckerberg’s net worth has fallen from over $260 billion to approximately $229 billion, pushing him down to fifth on the global rich list. The dramatic change underscores the CEO’s deep financial ties to Meta; he owns roughly 13.6 percent of the company, making any movement in its stock highly personal.
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Investors have long scrutinized Zuckerberg’s ambitious spending, including the company’s $100 billion pivot toward the metaverse—a gamble that has yet to yield a meaningful return. Now, Meta’s decision to double down on AI has rekindled concerns of overspending in pursuit of long-term gains.
Yet the company insists that the cost is justified. The capital injection aims to scale up computing resources, including what Zuckerberg calls a “mammoth” data center project. Advocates for the move argue that AI infrastructure is essential for Meta to remain competitive against rivals like OpenAI, Google, and Amazon.
Still, the reaction from the market signals a growing impatience. Many investors are wary of continued spending without clear revenue visibility, especially after Meta saw a surge in its stock price earlier this year on expectations of cost controls and shareholder-friendly policies.
Despite the sharp loss in personal wealth, Zuckerberg remains one of the world’s wealthiest figures. Analysts also note that stock values can swing quickly, and a future surge in performance or positive earnings news could easily restore much of the lost value.
For now, the episode highlights the delicate balance Meta must strike between investing in the future and maintaining investor trust—one that can be upended by just “two words.”