Meta Platforms has been spending too aggressively on artificial intelligence (AI) infrastructure and that will affect the tech giant’s profitability, according to a new investor note from Wall Street analyst firm MoffettNathanson.

The note, published on Tuesday, points out that Meta’s stock price (Nasdaq: META) has fallen almost 20% over the past month or so, exacerbated by its most recent earnings results, which were released on October 29.

MoffettNathanson has been a staunch defender of the Facebook and Instagram parent company, even when its shares have dipped in the past. But on Tuesday, analysts at the firm wrote, “we were obviously too complacent in our investment advice.”

Why is Meta spending so much on AI?

Meta along with fellow Big Tech firms including Amazon, Microsoft, and G

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