Meta Throws Spaghetti at Wall, AI Still Not Sticking to Profits

KEY POINTS

•Meta’s stock fell 10% in July 2026 after AI-related capital expenses skyrocketed past revenue growth.
•About 98% of Meta’s revenue still comes from ads, despite the company’s heavy AI investments like Muse Spark and smart glasses.
•CEO Mark Zuckerberg said Meta is building powerful new AI models but admits we’re not yet living in the AI assistant future.

On a historic Wednesday in 2026, Meta’s stock dived 10% as CEO Mark Zuckerberg unveiled their latest folly: spending outrageously on AI that’s about as grounded financially as a Hogwarts sorting hat. Despite 98% of Meta’s revenue still coming from traditional ads (hello, Facebook money), Meta's splurging on sketchy AI rollouts like Muse Spark—which, by the way, boosted AI assistant chatter by 60%. Analyst Minda Smiley compared these efforts to "throwing spaghetti on the wall," leaving us wondering if Zuckerberg’s Harvard dorm dream included noodle art. Meta also launched smart glasses and new apps, plus pitched AI compute to others, all while loudly proclaiming they’re "full-stack" not just ads. Investors, however, are less amused, with senior analyst Thomas Monteiro warning strong ads can’t cover these runaway expenses. Meanwhile, Zuck promises someday billions will have round-the-clock AI assistants, but right now, it’s just expensive dreams and AI spaghetti slime.