GE Vernova falls 11% as Meta's AI spending outlook raises financing concerns
GE Vernova (NYSE:GEV) shares dropped 11% to $826.01 after Meta Platforms (NASDAQ:META) announced a larger AI spending outlook, prompting worries about how the expanded investment will be financed. Meta beat revenue expectations but posted negative free cash flow for the quarter and issued non‑voting shares to broaden funding sources for its AI infrastructure.
Key points
- GE Vernova stock fell 11% to $826.01 after Meta's AI spending outlook raised financing concerns.
- Meta posted negative free cash flow and issued non‑voting shares while increasing its AI spending outlook beyond 2026.
- Vertiv Holdings dropped 7% to $196.42 and Eaton fell 6% to $369.80 as hyperscaler equipment demand worries spread.
The power‑equipment maker, which benefits from hyperscaler demand for gas turbines and grid gear, carries a $176 billion backlog and $5 billion in data‑center orders that now face uncertainty ahead of its Q3 2026 earnings release. Peer companies Vertiv Holdings (NYSE:VRT) and Eaton (NYSE:ETN) fell 7% to $196.42 and 6% to $369.80 respectively, while the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund slipped 4% and the S&P 500 ETF declined 1.43%. The moves illustrate how AI‑related financing questions are spilling over into the broader industrial sector.
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GE Vernova Slumps 11% as Meta’s Spending Outlook Stokes AI Financing Worries; Vertiv Holdings Drops 7%, Eaton Slides 6%
finance.yahoo.com · 22 October 2026
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