Meta Platforms Q1 Revenue and Spending Overview
Meta Platforms (NASDAQ: META) reported a first-quarter advertising revenue of $56.3 billion, marking a 33% increase year over year. This growth in revenue is primarily driven by advertising, which accounts for approximately 97% of the company’s overall revenue. On the operational side, Meta plans to spend between $125 billion and $145 billion on capital expenditures in 2026, nearly doubling its 2025 spending of about $72 billion.
Despite these substantial revenue gains, Meta’s earnings were impacted by high expenses, with adjusted first-quarter earnings reported at $7.31 per share, up only 14%, influenced heavily by an $8.03 billion tax benefit. Additionally, the company is facing scrutiny due to significant losses from its Reality Labs division, amounting to over $83 billion since 2020.
Looking ahead, the substantial investments in AI and advertising could yield positive results, although potential economic slowdowns and regulatory pressures pose significant risks. The stock’s valuation may fluctuate significantly in response to these dynamics, with forecasts suggesting a possible price range from the mid-$500s to around $1,000 over the next few years.
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