Meta's Capex Increase Amid Investor Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy META?
Source: Benzinga
Meta Platforms Inc. saw its stock price drop by 6.71% in pre-market trading as it crossed below the 20-day SMA, reflecting investor apprehension regarding its capital expenditure adjustments.
The company raised its 2026 capital expenditure forecast to a range of $125 billion to $145 billion, driven by rising component prices and increased data center costs. Despite this increase, investor concerns lingered over the returns on its AI investments, particularly following a significant operating loss of over $4 billion reported in its Reality Labs segment. This loss, coupled with ongoing financial strain and a strategic shift towards AI, has led to skepticism about the company's future profitability.
The implications of these developments suggest that while Meta is committed to investing in AI infrastructure, the market's reaction indicates a cautious outlook among investors regarding the effectiveness of these investments in generating future revenue.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 609.630
Low
655.15
Averages
824.71
High
1117
Current: 609.630
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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