Meta Stock Plunges 7% Post-Earnings as $135B Capex Outlook Overshadows Double Beat
Summary
Meta Platforms' stock tumbled 7% after hours despite reporting a strong Q1 2026 'double beat' on both adjusted EPS ($10.44 vs. $6.67 est) and revenue ($56.3 billion vs. $55.6 billion est, up 33% YoY). This negative market reaction, following the 8-K filed yesterday detailing the results, is primarily attributed to the company's increased capital expenditure guidance, which now stands at a $135 billion midpoint, up from $125 billion. This substantial investment in AI infrastructure is pressuring free cash flow and led the company to skip share buybacks this quarter, signaling investor concern over future capital allocation despite robust operational performance. Traders will be closely watching for further updates on capex and its impact on profitability.
At the time of this announcement, META was trading at $615.94 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.7T. The 52-week trading range was $520.26 to $796.25. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.