Meta's recent earnings report revealed mixed results, with revenue and EPS exceeding expectations. However, a significant increase in anticipated capital expenditures, particularly for AI development, has raised investor concerns. CFO Susan Li indicated that expanding its user base will necessitate substantial investment, leading to rising total serving costs despite expected improvements in compute cost efficiency. The company's free cash flow has turned negative, similar to Amazon. While Meta's advertising revenue showed strong year-over-year growth, ad impression growth unexpectedly slowed down. Reality Labs revenue declined, missing estimates. The company is planning to introduce a new class of non-voting stock to fund its costly AI initiatives without diluting Mark Zuckerberg's control. Despite the earnings beat, the stock saw its after-hours gains diminish due to the projected massive increase in future spending. Investors are wary of further news on the call regarding escalated capital expenditure plans.