Meta shares 20% lower, 2026 capital spending 1,350 billion to 1,450 billion dollars forecast
Meta shares 8 in 2025 peak 20%, a decline that 1quarterly revenue 33% and net income exceeded expectations by 57%, but the company’s 2026 capital expenditure guidance (1,350 billion to 1,450 billion dollars) added to selling pressure.
Meta’s shares 8 in 2025 peak 20%, and the decline continued even after the 1quarterly results were announced. Investors focused on the connection between the company’s increased capital expenditure guidance and the share price adjustment.
Meta 1quarter revenue rose 33%, and net income exceeded expectations by 57%. The company said user engagement across its platforms was at a record level. It said advertising remained a key pillar of its results.
The company 2026 capital expenditure guidance at 1,350 billion to 1,450 billion dollars. The expansion of this guidance prompted selling sentiment among investors. The company explained that the related spending would go toward long-term infrastructure and strengthening its AI capabilities.
The stock is testing important resistance near 650dollars. A descending wedge pattern is visible on the chart. Some observers interpret this pattern as a signal of recovery.
Meta's trailing price-to-earnings ratio (P/E) is 22.99times. This figure reflects recent share price movements. Short-term volatility remains.
Market expectations for 2027put the estimated P/E for the year at 17times to 18times. Meta has approximately 40hundred million users worldwide, and advertising is its main source of revenue. The company said it is increasing advertising revenue through AI-based pricing power.
Sources: Investing.com
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