Concerns about out-of-control artificial intelligence (AI) spending have cast a shadow of doubt over Meta Platforms (NASDAQ: META) recently. Despite being up as much as 35% in 2025, the stock ended the year with a total return of just 13%. This is largely due to Meta’s latest earnings report on Oct. 29. The Magnificent Seven company forecasted higher-than-expected spending in 2026, causing a huge sell-off. From then to the end of the year, the stock is down 12%.
Meta is looking to cut spending in some areas, such as the Metaverse. However, the company’s latest acquisition shows that AI investment remains top of mind. Below, we’ll break down the firm’s acquisition of AI startup Manus and detail its potential implications for the stock. All data is as of the Dec. 31 close unless otherwise indicated.
