BREAKINGVIEWS-Meta's fall shows punters crave clearer AI payoff

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April 30, 2026 11:56 AM EDT

FILE PHOTO: The logo of Meta is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025. REUTERS/Benoit Tessier/File Photo

By Karen Kwok

NEW ‌YORK, April ​30 (Reuters ​Breakingviews) - Shares fell 10% despite strong revenue growth and signs technology ‌is boosting ad sales. The issue ⁠is funding: unlike Alphabet, Amazon or Microsoft, there’s ‌no cloud arm to ‌cushion infrastructure spending. A rapidly rising bet with an unclear, slow payoff makes investors queasy.

Full ​view will be published shortly.

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CONTEXT NEWS

Meta ⁠Platforms raised its annual capital spending forecast when it reported ​first quarter results on April 29. The company now projects 2026 capital ​expenditure to be between $125 billion ‌and $145 billion, compared with its prior forecast of $115 billion to $135 billion.

Meta ⁠reported first-quarter revenue of $56.3 billion, beating the LSEG-compiled analysts' average estimate of $55.5 billion.

Separately, Alphabet ⁠also raised this year's capital expenditure forecast when it ​reported quarterly earnings on the same date. The search giant now expects to spend between $180 billion and $190 ‌billion, a $5 billion increase from the company's estimate last quarter. Alphabet ‌said it plans another significant increase ⁠in 2027.

Shares of ‌Meta dropped 10% ​in early trading on April 30.

(Editing by Robert Cyran; Production by Pranav ‌Kiran)


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