Meta Platforms (META) traded higher Thursday as the tape responded to renewed buy-side positioning ahead of the company’s Q1 2026 report expected in the final week of April. The day’s move follows an analyst note characterizing the recent pullback as a buying opportunity, highlighting continued confidence in AI-fueled monetization and resilient ad share trends.

The bullish framing centers on the idea that Meta’s AI investments are translating into better ad performance and revenue efficiency, supporting expectations for a solid Q1 print. A key swing factor into earnings remains capital spending: investors are focused on whether Meta’s 2026 capex outlook stays near the heavily discussed $115 billion to $135 billion band, with any incremental upside in spend likely to be scrutinized for margin impact.

The rally comes in the shadow of recent legal setbacks tied to child safety and platform-design claims, which have driven intermittent volatility and raised questions about longer-term operating constraints and potential financial exposure. Traders are also balancing enthusiasm for AI upside against the risk that a higher-for-longer infrastructure buildout keeps free-cash-flow expectations choppy into 2026.