Meta's AI Spending Rocks Wall Street: Zuckerberg's Net Worth Drops $18 Billion

Meta's stock dropped 9%, marking its worst single-day loss this year after an 11-day losing streak. This cut Zuckerberg's net worth from $183.3 billion to $165.5 billion. Meta raised its 2026 spending forecast to $137.5 billion but declined to commit to a 2027 estimate. Analysts like Scotiabank and Wedbush warned that investors should focus on free cash flow until Meta proves AI revenue. Microsoft's stock surged 15% after Copilot reached 30 million paid users. Meta's Q2 earnings of $6.18 fell short of $7.18 estimates, while revenue topped projections at $60.8 billion. Forrester analyst Tracy Woo noted Microsoft's data center buildout is now delivering returns. Meta's best week since 2024 came as it launched Muse Image, though Hollywood unions criticized privacy concerns.

Meta's AI spending threatens its profitability, giving Nvidia and Microsoft an edge. Markets should remain cautious until Meta demonstrates AI ROI.