WS Investor
30 Apr 2026, 12:13
Meta Beats Q1 Estimates, But Surging AI Capex Spooks Investors
Meta Platforms delivered a strong Q1 2026, yet shares slid after hours as Wall Street fixated on a massive spending hike.
Revenue climbed 33% year-over-year to $56.31 billion — the fastest growth since 2021 — beating estimates of $55.45 billion. Adjusted EPS came in at $7.31, topping the $6.79 consensus. Ad impressions jumped 19% year-over-year, while average price per ad rose 12%.
The trouble? AI spending. Meta raised its full-year 2026 capex guidance to $125–$145 billion, up from $115–$135 billion, citing higher component pricing and additional data center costs — and that single line item drove a ~6% after-hours decline.
META shares were trading at $613.00 in pre-market, down 8.39%.
Zuckerberg's AI investments have yet to produce new revenue streams but have strengthened the core advertising business. For now, markets want proof the bet will pay off (CNBC).
Meta Platforms delivered a strong Q1 2026, yet shares slid after hours as Wall Street fixated on a massive spending hike.
Revenue climbed 33% year-over-year to $56.31 billion — the fastest growth since 2021 — beating estimates of $55.45 billion. Adjusted EPS came in at $7.31, topping the $6.79 consensus. Ad impressions jumped 19% year-over-year, while average price per ad rose 12%.
The trouble? AI spending. Meta raised its full-year 2026 capex guidance to $125–$145 billion, up from $115–$135 billion, citing higher component pricing and additional data center costs — and that single line item drove a ~6% after-hours decline.
META shares were trading at $613.00 in pre-market, down 8.39%.
Zuckerberg's AI investments have yet to produce new revenue streams but have strengthened the core advertising business. For now, markets want proof the bet will pay off (CNBC).