Meta Platforms Earnings Report
Meta Platforms (NASDAQ: META) reported earnings on Wednesday, showing a 33% year-over-year increase in quarterly revenue, reaching $32 billion. However, the company’s commitment to artificial intelligence is significantly driving up costs, leading to an 8.6% drop in stock value the following day. Year-to-date, Meta shares are down 7%, lagging behind the Nasdaq-100 and S&P 500 indices.
For 2026, Meta anticipates capital expenditures of $125 billion to $145 billion, a rise from previous estimates of $115 billion to $135 billion. This increase is attributed to “higher component pricing” and “additional data center costs.” In contrast, Alphabet reported an increase in capital expenditure guidance but has found more profitable avenues in AI through services like Google Cloud.
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