Meta shares drop 4.8% as AI capex concerns weigh on post-earnings sentiment

Investors penalize the social media giant for heavy infrastructure spending and cautious forward guidance, extending a selloff triggered by reports of a potential equity raise.

By Handelsavisen Newsroom · Automated 2026-07-29 21:13 UTC · 1 min read Last updated: 2026-07-29 21:19 UTC

Meta Platforms shares fell 4.8% in the session, pressured by investor concerns over the company’s escalating artificial intelligence infrastructure costs.

The decline followed the release of second-quarter financial results, which included a revenue outlook for the third quarter that disappointed market participants.

The selloff extends a period of volatility for the stock, which had already dropped more than 5% earlier in the week.

The selloff extends a period of volatility for the stock, which had already dropped more than 5% earlier in the week.

That initial decline was triggered by reports that Meta is considering a massive equity offering to fund its AI initiatives, a move that raised questions about capital allocation and dilution risks.

Multiple Danish financial outlets, including Børsen and Politiken, highlighted the disconnect between Meta’s aggressive spending on AI data centers and the immediate return on investment visible in the latest earnings.

The market’s reaction suggests that investors are increasingly scrutinizing the efficiency of these capital expenditures, particularly as the company navigates a competitive landscape where AI capabilities are becoming a baseline expectation rather than a differentiator.