Meta shares drop as analyst raises 2027 AI spending estimate to $225B

On October 14, 2026, Meta shares fell by as much as 3.66%. They reached $734.605 by early afternoon.

Guggenheim analyst Michael Morris raised his 2027 capital expenditure forecast for Meta to $225 billion. His previous estimate was $203 billion, an increase of $22 billion. The higher forecast intensified investor concerns about the financial impact of Meta’s AI investments.

The revised estimates followed Meta’s launch of its new AI models, Muse Wonder and Muse Wonder Full. Shares initially rose more than 3% on October 12 after the launch.

CEO Mark Zuckerberg recently acknowledged that Meta had committed to spending hundreds of billions of dollars on AI infrastructure without knowing whether the investment would succeed.