Is AI Spend the New Streaming Spend?
Wall Street loves to reward arms race spending -- until they don't.
Meta is down big. Over 15% as I write this in pre-market trading. That's a couple hundred billion in market cap set to be wiped out by what was a... great overall earnings release. Most of the ding can likely be attributed to forward revenue guidance which was below expectations, but clearly some of it is concern about spend as well. This is not new for Meta, but we seemed to be beyond that narrative in the past few quarters as the stock has come roaring back. In walks AI...