Meta Platforms Increases Capex Guidance Amid AI Investments
Meta Platforms (NASDAQ: META) has raised its capital expenditure (capex) guidance to between $125 billion and $145 billion for 2026, an increase of $10 billion from its previous estimate. This change comes despite the company’s stock being down 21% from its all-time high of $796 last August, mainly due to concerns over its artificial intelligence (AI) spending.
In the first quarter of 2026, Meta saw a 33% increase in ad revenue to $55 billion, driven by AI-powered tools that improved engagement metrics and allowed businesses to optimize advertising campaigns. Ad impressions rose 19%, and the average price per ad increased by 12% compared to the previous year. CEO Mark Zuckerberg indicated that the company may sell excess computing capacity to other firms, providing a potential revenue stream while aligning its investment strategy with that of other major tech companies.
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