Meta Shares Plunge 9% Despite Beating Earnings as Company Takes $15.9B Tax Hit and Boosts AI Spending

Meta shares crash 9% despite crushing earnings expectations as the tech giant absorbs a massive $15.9 billion tax hit from Trump's new tax legislation while simultaneously ramping up AI spending with capital expenditures jumping to $70-72 billion for 2025.

• Meta shares drop 9% despite beating Q3 earnings expectations with $7.25 EPS versus $6.69 estimated and revenue of $51.24 billion versus $49.41 billion expected
• Company reports $15.93 billion one-time tax charge due to Trump's One Big Beautiful Bill Act implementation, though expects significant reduction in future U.S. federal cash tax payments
• Meta raises 2025 capital expenditure guidance to $70-72 billion from $66-72 billion and increases total expense outlook by $2 billion to fund AI initiatives and data center investments