Meta Delays AI Model Avocado Rollout Amid Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Should l Buy META?
Source: NASDAQ.COM
- AI Model Delay: Meta has delayed the rollout of its latest AI model, Avocado, due to it falling short of internal benchmarks, and may temporarily license Alphabet's technology to bridge the performance gap, which has spooked investors regarding the company's AI leadership.
- Strong Revenue Growth: Despite the AI model delay, Meta reported a 24% year-over-year revenue growth in Q4 2025, reaching $59.9 billion, driven primarily by an 18% increase in ad impressions and a 6% rise in average ad prices, showcasing the strength of its core advertising business.
- Capital Expenditure Plans: Meta anticipates capital expenditures between $115 billion and $135 billion for 2026, representing about 8% of its market capitalization; even with the AI model delay, the company is investing ahead of its infrastructure needs, with CEO Zuckerberg expressing optimism about future growth.
- Future Growth Outlook: Meta expects a 30% year-over-year revenue growth in Q1 2026, and despite the challenges in AI development, the strong performance of its core business and substantial cash reserves ($81.6 billion) make it an attractive opportunity for investors willing to navigate the technological transition.
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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: 579.230
Low
655.15
Averages
824.71
High
1117
Current: 579.230
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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- Capital Expenditure Control: Unlike rivals such as Amazon and Microsoft, which are committing hundreds of billions annually to AI infrastructure, Apple has kept its capital expenditures in check, a strategy that reduces short-term risks but places it at a disadvantage in generative AI.
- Privacy and Technology Balance: CEO Tim Cook has emphasized that privacy is a
See More
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