"Meta's Q1 2026 revenue reached $56.31 billion, growing 33.08% year over year, with EPS of $10.44 beating consensus by 56.79%. Despite this, shares fell sharply after the company raised its 2026 capex guidance to $125 to $145 billion."
"The bull case for Meta suggests a price target of $997.80, driven by AI's impact on ad pricing and engagement, with significant increases in conversion rates and user engagement on platforms like Instagram and Facebook."
"Risks include the digestion of increased capital expenditures, as Reality Labs reported a loss of $4.03 billion in the quarter, and free cash flow growth lagged behind revenue growth at just 11.74%."
Meta Platforms achieved a remarkable Q1 2026 with revenue of $56.31 billion, a 33.08% year-over-year increase, and EPS of $10.44, surpassing expectations. Despite this success, the stock price fell sharply from $671.77 to $608.75 after raising 2026 capex guidance to $125 to $145 billion. The bullish outlook suggests a price target of $882.71, driven by AI advancements in ad pricing and engagement. However, risks include high capital expenditures and ongoing litigation, which could impact future performance.
Read at 24/7 Wall St.
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