Meta Raises 2026 Capex to $137.5B Midpoint, Shares Jump 6%
META is trading near its 52-week low of $520.26 (13% above the low).
Summary
Meta shares surged ~6% after the company raised its 2026 capex guidance to a $130B–$145B range, with a midpoint of $137.5B, up from the prior $145B figure reported in June. The refined range signals continued aggressive investment in AI infrastructure, including data centers and processors, which the market is rewarding despite the massive spending. This follows the Q2 10-Q that showed 28% revenue growth to $60.8B but an 8% drop in operating income due to soaring AI costs and a $2.4B legal charge. The capex increase is paired with new product moves: a WhatsApp satellite integration with AST SpaceMobile for direct-to-device services and the July halt of Muse Image over privacy concerns. Meanwhile, Australia's raised news bargaining levy to 2.5% of ad revenue adds a potential cost headwind if Meta signs local publisher deals. The stock's jump suggests investors are buying into the AI capex narrative, but the spending trajectory remains a key risk given the Q2 margin compression.
At the time of this announcement, META was trading at $589.22 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $520.26 to $796.25. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.