Meta Stock Slumps on Bloated Capex Plans

Meta Platforms (META) shares plummeted by 6% in after-hours trading as investors grappled with the company's ambitious capital expenditure plans. The tech giant announced a significant increase in its 2026 capex guidance to $145 billion, significantly surpassing analyst estimates of $124 billion.

The higher end of the spectrum is now at $135-145 billion, with Meta CFO Susan Li attributing the increased costs to 'higher component pricing' and additional data center expenses. This move comes as a surprise given the company's recent cost-cutting measures, including layoffs and hiring freezes.

Despite this setback, Meta reported strong Q1 earnings, beating analyst consensus of $6.82 per share with $10.44 per share. The company also exceeded Wall Street estimates for Q2 revenue guidance, projecting between $58-61 billion in sales.