Meta shares drop 9% as Mike Khouw recommends buying now
Summary
Meta shares have dropped 9% this week, primarily due to concerns about rising expenses related to its artificial intelligence initiatives, which have resulted in a significant loss of $135 billion in market capitalization. While Meta reported strong earnings and has a market cap of $1.65 trillion, issues such as a $25 billion lawsuit in New Mexico and public relations challenges regarding tax liability agreements have contributed to the decline. The company has recently introduced advanced models to enhance its Muse AI agent, aiming to make it a key driver for future growth, with plans to integrate AI more deeply into commerce and hardware. As Meta prepares to issue new non-voting shares to fund these ongoing investments, the current pricing reflects a mixture of these challenges and the promising potential of its AI endeavors.
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Related sources
- https://www.businessinsider.com/meta-q3-2026-earnings-mark-zuckerberg-muse-ai-app-users-2026-10
- https://www.theverge.com/tech/1016905/meta-earnings-fall-2026-muse-network
- https://www.newsbreak.com/news/4950422729615-mike-khouw-says-options-are-the-name-of-the-game-for-traders-playing-coreweave-s-volatility
- https://about.fb.com/news/2026/10/introducing-muse-wonder-models/
- https://www.reuters.com/business/meta-issue-new-class-shares-it-tightens-ai-spending-forecast-2026-10-21/
- https://muckrack.com/michael-khouw
- https://www.newsbreak.com/news/4945868052335-options-for-this-steel-company-make-a-compelling-sale-says-mike-khouw
- https://www.cnbc.com/video/2026/10/23/mike-khouw-likes-this-options-strategy-for-meta-post-earnings.html
- https://www.newsbreak.com/news/4956586993148-how-options-traders-can-go-long-on-apple-for-less
- https://www.nytimes.com/2026/10/09/technology/inside-mark-zuckerbergs-decision-to-pull-the-trigger-on-metas-ai-agent.html