The stock of Meta Platforms (META) is sinking after the social media company raised its estimate for artificial intelligence (A.I.) capital expenditures this year to $145 billion U.S.
Meta now expects 2026 capital expenditures of between $125 billion U.S. and $145 billion U.S., up from a previous forecast of $115 billion U.S. to $135 billion U.S.
The raised AI capex figure overshadowed what was otherwise a strong first-quarter print from the company.
Meta announced earnings per share (EPS) of $10.44 U.S., which handily beat the $6.67 U.S. that Wall Street had expected from the company.
Revenue in the year’s first three months totaled $56.31 billion U.S., which was ahead of the $55.56 billion U.S. consensus estimate among analysts.
In terms of guidance, Meta said that it now expects revenue in the current second quarter to range between $58 billion U.S. and $61 billion U.S.
At the midpoint, that’s ahead of the $59.48 billion U.S. Wall Street expected from the company.
The latest print from Meta Platforms comes after the company recently announced plans to layoff 10% of its global workforce, or about 8,000 employees, as it invests more in A.I.
The company, which owns Facebook, Instagram, and WhatsApp has been spending heavily on A.I. infrastructure as it launches its first AI model called “Muse Spark.”
META stock had previously risen 21% over the past 12 months to trade at $669.12 U.S. per share.
