Meta sinks after Q1 report lifts 2026 capex outlook to $125–$145 billion
Meta Platforms shares are falling after the company raised its 2026 capital-expenditure outlook to $125–$145 billion, up from $115–$135 billion. The higher spending plan is weighing on near-term free-cash-flow expectations despite strong Q1 results released April 29, 2026.
1. What’s driving the selloff
Meta is selling off after its April 29, 2026 first-quarter earnings release highlighted a higher full-year 2026 capital-expenditure outlook. The company now expects 2026 capex (including principal payments on finance leases) of $125–$145 billion, increased from its prior $115–$135 billion range, putting the focus on how much cash AI infrastructure will consume this year. ÀÀciteÂturn1search1Âturn1search2Á
2. Why investors care
For a mega-cap stock priced for durable growth, the market reaction is being driven less by the quarter that just ended and more by forward cash-flow math: higher capex can compress free-cash-flow yield and pressure valuation multiples, even if advertising demand remains strong. The move suggests investors are re-underwriting 2026 profitability and capital return capacity around a bigger AI buildout. ÀÀciteÂturn1search1Âturn1search2Á
3. What to watch next
Attention shifts to management’s explanations for the higher spending range (including any indications of higher component pricing, data center build timing, and AI compute needs) and whether Meta can show accelerating monetization from AI-driven ad tools quickly enough to offset the heavier investment load. Any additional detail on the pace of capex through the rest of 2026 and implied margin trajectory is likely to remain the primary catalyst for the stock in the near term. ÀÀciteÂturn1search1Á