The stock of Meta Platforms (META) is down 5% after the technology giant raised its estimate for artificial intelligence (AI) capital expenditures this year to $145 billion.
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The social media giant now expects 2026 capital expenditures of between $125 billion and $145 billion, up from a previous forecast of $115 billion to $135 billion, as it goes all in on the AI buildout. The raised AI capex figure overshadowed what was otherwise a strong print from the Facebook parent company.
Meta reported first-quarter earnings per share (EPS) of $10.44, which trounced the $6.67 that Wall Street had expected from the company. Revenue in the year’s first three months totaled $56.31 billion, which was ahead of the $55.56 billion consensus estimate among analysts.
Meta Platforms’ income statement. Source: The Fly
Meta Platforms’ Outlook
In terms of forward guidance, Meta said that it now expects revenue in the current second quarter to range between $58 billion and $61 billion. At the midpoint, that’s ahead of the $59.48 billion Wall Street had penciled in for the company.
The latest print from Meta Platforms comes after the company recently announced plans to layoff 10% of its global workforce, or about 8,000 employees, as it invests more in AI. The company, which also owns Instagram, WhatsApp and Threads, has been spending heavily on AI infrastructure as it launches its first AI model called “Muse Spark.”
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 33 Wall Street analysts. That rating is based on 28 Buy and five Hold recommendations issued in the last three months. The average META price target of $852.64 implies 27% upside from current levels. These ratings could change after the company’s financial results.
