Meta Shares Fall as GDP Slows to 1.4% and Core PCE Hits 3%
U.S. GDP growth slowed to 1.4% in Q4 2025 from 4.4%, falling below the 3% forecast, while core PCE inflation rose to 3%, the strongest since February. Meta Platforms shares declined about 0.5% in premarket trading on heightened rate uncertainty and reduced growth visibility for AI-linked stocks.
1. Macroeconomic Slowdown and Market Reaction
U.S. GDP growth decelerated to an annualized 1.4% in Q4 2025 from 4.4% in Q3, missing the 3% consensus and triggering a risk-off move in equity futures.
2. Inflationary Pressures Intensify
Core Personal Consumption Expenditures inflation accelerated to 3% year-on-year in December, the fastest since February, heightening concerns that the Federal Reserve may maintain higher interest rates longer.
3. Meta Premarket Decline
Meta Platforms shares fell approximately 0.5% in premarket trading as investors weighed slower economic growth and persistent inflation against the company’s growth forecasts, particularly for its AI-driven advertising and metaverse initiatives.