Meta Delays AI Model Rollout, Stock Takes a Hit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Should l Buy META?
Source: Fool
- AI Model Delay: Meta's upcoming AI model, codenamed 'Avocado', has failed to meet internal benchmarks, prompting the company to consider temporarily licensing Alphabet's Gemini model to bridge the performance gap, resulting in a 3.77% drop in stock price as investors reacted negatively.
- Strong Core Business: Despite the AI model delay, Meta's core advertising business saw a 24% year-over-year revenue increase in Q4 2025, reaching $59.9 billion, indicating robust demand for ads across Facebook, Instagram, and WhatsApp, and showcasing the company's strong profitability in the advertising sector.
- Capital Expenditure Plans: Meta's projected capital expenditures for 2026 range from $115 billion to $135 billion, representing about 8% of the company's market capitalization; despite the AI model delay, the company is investing in future infrastructure needs, with CEO Zuckerberg stating that the company is prepared for such scenarios.
- Future Growth Outlook: Meta anticipates a 30% year-over-year revenue growth in Q1, and despite the challenges posed by the AI model delay, the company maintains a strong cash reserve and marketable securities, highlighting its potential and attractiveness during this 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 Plans: In 2026, Alphabet plans to spend $175 billion to $185 billion, while Amazon and Meta are set to invest $200 billion and $115 billion to $135 billion respectively; Ackman believes these investments will drive future earnings growth despite ongoing concerns about returns.
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