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Meta Stock Stalls as Cost Fears Eclipse Strong Quarter

Meta Stock Stalls as Cost Fears Eclipse Strong Quarter

Meta Platforms ( (META) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.

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Meta Platforms shares moved only slightly despite strong quarterly results, as investors weighed upbeat advertising momentum against concerns over rising costs and future risks. The stock saw a small pre-market gain followed by a minor pullback after hours, reflecting this mixed reaction. Meta beat Wall Street forecasts for both revenue and earnings in the fourth quarter, helped by robust holiday ad demand and early benefits from AI-driven advertising tools, prompting analysts to revisit their outlook on the company. However, management’s guidance for significantly higher expenses in 2026 and hefty capital spending on AI infrastructure has injected caution, especially when combined with ongoing regulatory and legal uncertainties. New initiatives, including tests of paid subscriptions, expanded AI tools, rising daily active users, firmer ad pricing, and a multiyear fiber agreement to support AI data centers, are also shaping how analysts adjust their price targets and longer‑term expectations for the stock.

More about Meta Platforms

YTD Price Performance: 1.95%

Average Trading Volume: 19,325,762

Technical Sentiment Signal: Buy

Current Market Cap: $1694.7B

For further insights into META stock on TipRanks’ Stock Analysis page.

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