Meta Platforms, Inc. (META) shares have dropped 6.7% year-to-date, underperforming the Zacks Computer & Technology sector’s decline of 2.9%. In comparison, competitors Microsoft and Amazon have seen larger drops of 9.1% and 19% respectively. As of now, META is trading at a forward price/sales ratio of 6.01, surpassing the industry average of 3.91 but falling short of Alphabet and Microsoft at 8.83 and 8.06.
For the first quarter of 2026, Meta expects revenues between $53.5 billion and $56.5 billion, marking an anticipated 30.8% growth year-over-year. Meanwhile, projections show earnings per share of $6.67 for Q1 2026, a 3.3% increase over the past 60 days. However, higher capital and operating expenditures are expected, with total expenses projected to fall between $162 billion and $169 billion for 2026, primarily driven by elevated costs in AI infrastructure.
Meta is investing heavily in AI, projecting a capital expenditure of $115 to $135 billion by 2026 to boost user engagement across its platforms, which host over 3.58 billion daily users. Nonetheless, ongoing challenges like regulatory issues and fierce competition in the advertising market present risks to its stock performance ahead.
