What’s News in Markets: Meta’s AI Bill, IBM’s Comeback, Musk Explores Merger

October 24, 2026

AI Summary

5 min read

Meta reported record revenue in the third quarter, but its stock fell 9.4% for the week because investors were laser-focused on how much money was going out the door. The company disclosed roughly $825 billion in future leases and non-cancelable contracts tied to its AI buildout, up from nearly $700 billion in July. And even though it brought in a staggering $64.6 billion last quarter, its free cash flow turned negative for the first time since the company went public. During the earnings call, Meta executives told analysts that they expect to keep spending aggressively, and now they're getting creative about how to pay for it. The company announced a two-for-one stock split that will give existing shareholders a new class of shares. Meta can eventually sell more of those shares to raise money for its AI ambitions, but since the new class of shares don't come with any voting rights, those sales won't weaken CEO Mark Zuckerberg's control over the company.

The Broader AI Spending Debate

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What you'll learn

1 (00:33) **Week Overview: AI Dominates Markets** - The host introduces the episode, noting AI as the week’s central theme, with a look at Anthropic’s draft IPO filing showing massive revenue growth but also huge planned spending on computing power.
2 (01:58) **Meta’s AI Bill Shocks Investors** - Meta reported record Q3 revenue, but its stock fell 9.4% as investors focused on massive future spending commitments tied to AI.
3 (03:10) **Broader Tech Sell-Off** - The market’s wariness about AI spending spread, with Alphabet shares ending the week 6% lower and the Philadelphia Semiconductor Index falling 3.2%.
4 (03:28) **IBM’s Comeback Story** - IBM was the best performer in the Dow this week, rising 9.2% after reporting stronger-than-expected earnings, a dramatic turnaround from its worst-ever decline in July.
5 (04:19) **Musk Explores Merger Between Tesla and SpaceX** - Both companies reported earnings, but the news was overshadowed by Elon Musk’s announcement that special committees are exploring a potential tie-up between the two firms.
6 Standout Quotes
7 "Wall Street is already questioning whether AI will make enough to justify all that spending." (00:15)

+ Full timestamped outline available in the app

Show Notes

Can Meta afford to keep spending on AI? And why is IBM bucking the tech selloff? Plus, could Elon Musk combine Tesla and SpaceX? Host Imani Moise discusses the biggest stock moves of the week and the news that drove them.

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