Meta Stock in Free Fall After ‘Big Beautiful’ $16 Billion Trump Bill

Meta’s stock has taken a massive hit, plunging more than 8% in after-hours trading after a surprise $16 billion tax charge linked to former US President Donald Trump’s “One Big Beautiful Bill Act.”

Despite record engagement across Facebook, Instagram, and WhatsApp — now reaching 3.5 billion global users — the tech giant’s quarterly profit took a major blow, shaking investor confidence.

The Numbers Behind the Drop

Meta reported that quarterly profits would have reached $18.64 billion if not for the one-time tax provision. Still, the company managed to post $51.2 billion in revenue, up 26% year-on-year, exceeding Wall Street expectations.

However, rising operational costs — primarily from Meta’s aggressive AI expansion — contributed to the market’s negative reaction. Total costs climbed to $30.71 billion, marking a 32% increase from the same quarter last year.

AI Ambitions and Rising Costs

Meta CEO Mark Zuckerberg doubled down on the company’s vision for the future, emphasizing AI as the cornerstone of Meta’s long-term strategy.

“I am very focused on establishing Meta as the leading frontier AI Lab, building personal super intelligence for everyone and delivering the app experiences and computing devices that will improve the lives of billions of people around the world,” Zuckerberg said during the earnings call.

Meta raised its capital expenditure forecast to between $70–$72 billion, signaling ongoing heavy investment in AI infrastructure and computing hardware — a move that could pressure profits in the near term.

Investor Outlook

Analysts note that while Meta’s revenue and user growth remain strong, the increased spending and tax hit are short-term challenges. The long-term payoff depends on how well Meta integrates AI into its platforms to enhance engagement and monetization.

For now, investors are watching closely as the company balances record user growth with the high cost of technological innovation.