Meta's Chief Executive Mark Zuckerberg attributed the company's plan for layoffs to increased capital expenditures and declined to rule out further cuts, in comments delivered to employees at an internal company town hall on Thursday.
Meta previously announced it will cut 10% of its staff next month. Meta's HR chief told staff in a meeting that she can't promise further layoffs won't happen.
Meta is upping its AI investments. Wall Street's not sure how that will pay off.
The threat from Meta comes just weeks after a New Mexico jury slapped the company with $375 million in civil penalties and ruled that the company failed to protect kids from sexual predators on its apps.
Meta has seen a surge in business users employing its artificial intelligence (AI) tools. Speaking during the company's Wednesday (April 29) earnings call, CEO Mark Zuckerberg said these tools were handling 10 million conversations a week by late March, compared to 1 million at the start of the year.
Meta slides after earnings beat as higher 2026 capex and weak user metrics spook investors, putting META-heavy ETFs like VOX in focus.
Meta Platforms delivered robust Q1 results, with 33% YoY revenue growth and a 62% EPS beat, yet shares fell on increased capex guidance. The market overreacted to META's Capex hike to $125–$145B for 2026, discounting the long-term strategic value of AI infrastructure investment. META's unparalleled distribution, network effects, and proprietary data position it as a premier AI leader, with forward revenue and EPS growth expected to outpace peers.
Meta Platforms tops Q1'26 estimates as ad demand lifts revenues by 33% to $56.31B. AI progress includes the first Superintelligence Labs model.
The hosts of The Best One Yet podcast captured the magnitude of Meta's AI ambitions in a single line during their “MAMA Stocks” segment: Meta Platforms (NASDAQ:META | META Price Prediction) is “the most profitable company in history that you've never paid a dollar to.
Meta Platforms (NASDAQ:META | META Price Prediction) stock fell after JPMorgan downgraded it to Neutral from Overweight, cutting the price target to $725 from $825.
Meta Platforms (META) remains a long-term compounder, but is now in a technical bear market with short-term downside risk. META's Q1 2026 showed strong core ad growth and 14% adjusted EPS growth, but elevated CapEx and Reality Labs losses weigh on sentiment. Rising CapEx, driven by higher component costs and AI infrastructure investment, is compressing ROI and raising near-term concerns.
Meta Platforms, Inc. delivered >33% revenue and >30% operating profit growth in Q1, with margins exceeding 40%, underscoring exceptional profitability. What else does the market want? The market's negative reaction to META's modest CapEx guidance increase (