Meta Boosts 2026 Capex to $125–145B as Wells Fargo Cuts Price Target to $765
META•Wells Fargo cut Meta’s 2026 price target to $765 from $770 while maintaining an Overweight rating as Meta raised its 2026 capex forecast to $125–145 billion. Meta’s Q1 revenue rose 33% to $56.31 billion and ad revenue climbed 12% on 19% more impressions, while Reality Labs lost $4.03 billion.
1. Wells Fargo Revises Price Target
Wells Fargo cut Meta’s 2026 price target to $765 from $770 while maintaining an Overweight rating, citing the company’s decision to raise its 2026 capital expenditure outlook to a range of $125–145 billion as a factor weighing on near-term returns.
2. Q1 Financial Highlights
Meta reported first-quarter revenue of $56.31 billion, a 33% increase year-over-year, driven by a 19% rise in ad impressions and a 12% increase in average price per ad that lifted total ad revenue.
3. Reality Labs Drag
Reality Labs posted an operating loss of $4.03 billion in Q1, underlining the continued pressure from augmented and virtual reality investments despite robust advertising performance.
4. Internal AI Efficiency Drive
Chief Technology Officer Andrew Bosworth is steering an internal AI initiative aimed at reducing management layers and accelerating product development, which could improve operational efficiency and support margin expansion if execution remains smooth.
