On April 29, 2026, Meta’s stock dropped about 6% after the company reported first-quarter revenue of $56.3 billion. While this figure exceeded analyst estimates of $55.45 billion, it was overshadowed by disappointing user growth and lower-than-expected capital expenditures.
Investors had high hopes for Meta, particularly in light of strong momentum in technology stocks—after all, the Nasdaq Composite had risen by 14% that month alone. Yet, the reality was stark: Meta’s daily active users (DAP) came in at 3.56 billion, falling short of the projected 3.62 billion.
Key financials from the report:
- First-quarter revenue: $56.3 billion
- Daily active users: 3.56 billion
- Capital expenditures: $19.84 billion
- Average estimate for capital expenditures: $27.57 billion
The company’s capital expenditures were particularly concerning. At $19.84 billion, they missed expectations significantly. This led to questions about Meta’s future investments—especially as they plan to spend hundreds of billions on AI infrastructure over the coming years.
Mark Zuckerberg expressed confidence in their long-term strategy, stating, “I expect that we will invest a significant amount of capital over the coming years to pursue that opportunity.” However, the immediate investor sentiment seems less optimistic.
Additionally, Meta raised its full-year capital expenditure guidance to a range of $125 billion to $145 billion while maintaining its expense outlook between $162 billion and $169 billion.
This situation raises important questions about how Meta will balance its ambitious spending on AI with investor expectations for growth and profitability. With headcount rising only 1% year-on-year to 77,986 employees as of March 31, one wonders how effectively they can manage such ambitious plans.
The market reaction underscores a broader uncertainty in tech stocks right now—how will investors respond when growth metrics don’t align with spending plans? The tension between revenue growth and user engagement continues to shape the narrative around Meta and its peers.