Meta is 'throwing spaghetti at the wall' with its AI strategy, one analyst warns

Meta CEO Mark Zuckerberg. Bloomberg/Getty Images Meta's stock is tumbling as its AI bets wipe out most of its free cash flow. One analyst said its latest AI rollouts feel like "throwing spaghetti on the wall." Meta says its AI investments are accelerating its core business, and there's much more to come. Meta's AI strategy is, once again, worrying investors. The social media giant's stock tumbled 10% on Wednesday after it disclosed that its capital expenditure growth far outpaced revenue growth. Meta has a core problem: much of this spending doesn't yet have a financial return. About 98% of Meta's revenue still comes from its traditional ads business, according to its second-quarter results. Meta has been trying lots of new things lately, like rolling out new subscriptions, smart glasses , and apps. It's also weighing selling AI compute to other companies.