25% 2026 Net Income Forecast Fuels Meta Rally Before 1.5% Selloff
Magnificent Seven net income, including Meta’s, is forecast to expand 25% in 2026 versus 11% for the rest of the S&P 500, underpinning an average 11% gain over the past month. Shares slid 1.5% Monday after Tehran halted U.S.-Iran talks, dragging S&P 500 futures down 0.7%.
1. Strong 2026 Earnings Outlook for Magnificent Seven
Morgan Stanley forecasts net income for the Magnificent Seven, including Meta, to rise 25% in 2026 compared with 11% for the rest of the S&P 500. This projection underpins an average 11% return across the group over the past month as investors chase AI-driven growth potential.
2. Monday Pullback Driven by Geopolitical Uncertainty
Tech futures, including Meta-linked contracts, slid on Monday after Tehran suspended U.S.-Iran negotiations. Dow futures fell nearly 1%, while S&P 500 futures dropped 0.7%, sparking a 1.5% decline in Meta’s share performance for the session.