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Meta Raises Capex, Cuts Jobs as DAU Falls

4/30/2026

44 6 Full Breakdown

Summary

Meta Raises Capex

Meta raised its full-year capex forecast to $125 billion-$145 billion, and shares fell about 5%-6% after hours.
The company posted Q1 revenue of $56.31 billion versus $55.45 billion estimate and adjusted EPS of $7.31 versus $6.79 expected.
Meta cut roughly 8,000 jobs, will not fill 6,000 roles, and warned that daily active users fell to 3.56 billion—the first decline—potentially leading to material losses from youth-safety litigation.

Summary

Meta Blocked

China blocked Meta’s acquisition of AI startup Manus, curbing its subscription-revenue plans.
An $8.03 billion tax benefit from U.S. President Donald Trump’s bill boosted Q1 net income.
Analysts project Meta will overtake Google in net advertising revenue this year.
CEO Mark Zuckerberg met Senate Majority Leader John Thune at the Capitol in March, signaling political outreach.

History

Historical Context

In May 1998 the U.S. Department of Justice and 20 states sued Microsoft for bundling Internet Explorer with Windows, a practice the court deemed a monopoly violation. That antitrust precedent, which forced Microsoft to alter licensing and settle the case, now frames Senate scrutiny of Meta as China blocks its Manus AI purchase and user numbers decline.

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Meta Raises Capex

Meta raised its full-year capex forecast to $125 billion-$145 billion, and shares fell about 5%-6% after hours.
The company posted Q1 revenue of $56.31 billion versus $55.45 billion estimate and adjusted EPS of $7.31 versus $6.79 expected.
Meta cut roughly 8,000 jobs, will not fill 6,000 roles, and warned that daily active users fell to 3.56 billion—the first decline—potentially leading to material losses from youth-safety litigation.

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