Meta Raises FY2026 Capex Guidance to $125–145B, Stock Falls Despite 33% Q1 Revenue Growth

META-2.03%
According to 24/7 Wall St via Yahoo Finance, Meta Platforms (META) trades at $582.90 as of July 8, 2026, down 11.5% year to date and 4.9% on July 2 alone after the company raised its full-year 2026 capital expenditure guidance to $125–145 billion. The move highlights a valuation paradox: Q1 2026 revenue grew 33.1% to $56.31 billion with operating income up 30%, yet analysts' bear case targets $720.38 (24% above current price) and the bull case reaches $868.79 — both implying the market has priced the AI infrastructure spend as unrecoverable cost rather than future asset. At roughly 20 times normalized earnings while growing revenue 33%, Meta trades at bear-case multiples on bull-case fundamentals, a disconnect historically resolved when earnings beats force estimate upgrades into compressed valuations.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments