Meta Raises 2026 Capex to $125–145B as Stock Drops 9.8% on User Decline
META•Meta Platforms stock plunged 9.8% this week despite beating Q1 earnings and revenue estimates, driven by a sequential drop in daily active users. The company lifted its 2026 capital expenditure guidance to $125–145 billion from $115–135 billion to accelerate AI investments.
1. Q1 Earnings and Revenue Beat
Meta Platforms reported Q1 profit and revenue above analyst forecasts, underpinned by strong advertising sales and effective user monetization strategies.
2. Stock Price Reaction
Despite the earnings beat, Meta’s shares fell 9.8% over the week as investors weighed concerns over user growth and rising operating costs.
3. Daily Active User Decline
Daily active users declined sequentially, reflecting disruptions in Iran and WhatsApp restrictions in Russia, which raised questions about regional engagement trends.
4. Elevated Capex Guidance
Meta increased its 2026 capital expenditure forecast to $125–145 billion from $115–135 billion to fund AI research and infrastructure, signaling a ramp-up in long-term investment.
