The downward pressure on Meta Platforms today reflects growing investor anxiety regarding the company’s capital expenditure trajectory as it moves deeper into its multi-year artificial intelligence infrastructure cycle. Market participants are increasingly scrutinizing the lack of near-term monetization transparency for the massive investments in generative AI and customized silicon. This skepticism is compounded by reports suggesting that the return on investment for the latest iteration of its hardware ecosystem may take longer to materialize than previously anticipated by Wall Street.

Simultaneously, the broader advertising technology sector is grappling with a shift in advertiser sentiment following recent macroeconomic data that…