Meta Stock Just Dropped 9%: Is This the Dip to Buy?
Meta Platforms' stock dropped 9% after the company raised its 2026 capital expenditure guidance to $125 billion to $145 billion, citing higher component pricing and data center costs. Despite strong Q1 revenue and EPS, investors were spooked by the increased spending on AI infrastructure.
Meta Platforms' stock fell 9% after the company reported Q1 revenue of $56.31 billion, growing 33.08% year over year, and EPS of $10.44, beating the consensus. However, the company raised its 2026 capex guidance to $125 billion to $145 billion, up from $115 billion to $135 billion, due to higher component pricing and data center costs. Analysts remain bullish, with 59 out of 65 rating it Buy or Strong Buy. The company's ad impressions grew 19% year over year, and operating income climbed 30.29% to $22.87 billion. Meta's AI infrastructure buildout is expected to drive future growth, with the company releasing its first model from Meta Superintelligence Labs. The stock is down 7.3% year to date, despite a forward P/E of roughly 22 and revenue growth in the low 30s.
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