Meta Platforms (META) shares have declined by 10.3% over the past month, significantly trailing the broader Zacks Computer & Technology sector’s 7% increase. In contrast, competitors Alphabet (GOOGL) saw a 14.7% rise, while Amazon (AMZN) and Microsoft (MSFT) increased by 3.8% and dropped by 2.7%, respectively.
The company faces ongoing investor concern regarding substantial AI investments, leading to a projected capital expenditure of $125 billion to $145 billion by 2026, compared to a prior estimate of $115 billion to $135 billion. Despite these challenges, META anticipates second-quarter 2026 revenues between $58 billion and $61 billion, with a consensus estimate at $60.13 billion, marking a 26.6% year-over-year growth.
Moreover, META’s focus on AI integration has yielded positive user engagement outcomes, including a 10% increase in Instagram Reels watch time and significant growth in WhatsApp paid messaging. The company reported over 8 million advertisers using its generative AI tools in Q1 2026, indicating a potential for future revenue growth despite current valuation pressures.
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