Friday, October 31, 2025-Meta Platforms suffered one of the largest single-day losses in Wall Street history, erasing a staggering $237 billion in market value after investors recoiled from its latest earnings report.
The social media giant’s massive investment in artificial intelligence touted by CEO Mark Zuckerberg as the future of Meta’s growth has instead triggered widespread concern over “runaway” spending and unclear returns. The company’s costly push into generative AI and virtual infrastructure has analysts questioning whether Meta’s ambitions are outpacing its profitability.
The sell-off sent shockwaves through the tech sector. Traders dumped shares across the industry, fearing that Meta’s stumble signals a broader cooling in AI enthusiasm. “It’s a reality check for the hype cycle,” one Wall Street strategist said.
Financial analysts slashed their price targets, accusing Meta of prioritizing long-term experimentation over immediate shareholder value. Meanwhile, users and employees took to social media to express disbelief as the company’s stock chart plunged in real time, a visual echo of the market chaos of 2022’s tech downturn.
The collapse underscores a growing tension between Silicon Valley’s AI optimism and Wall Street’s demand for discipline. While Meta insists its AI investments will revolutionize content creation, advertising, and the metaverse, investors appear less patient for payoffs that could take years.
If the company fails to stabilize confidence, this record-breaking loss may mark a turning point not just for Meta, but for the entire narrative driving Big Tech’s next chapter.
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