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Meta Raises Capex, Posts 33% Revenue, Stock Slides

5/2/2026

50 4 Full Breakdown

Summary

Meta Shares Fall

Meta posted Q1 2026 revenue of $56.31 billion, up 33%, and earnings of $7.31 per share.
It raised its 2026 capex midpoint to $135 billion from $125 billion.
Shares fell about 8% after hours, a 9% one-day drop on April 30, 2026.
JPMorgan analyst Doug Anmuth cut his target to $725 from $825 and downgraded Meta to Neutral.
Goldman Sachs analyst Eric Sheridan lowered the 12-month target to $830 from $840 after the capex raise.

Summary

Meta Faces Lawsuit

A Los Angeles jury held Meta liable for harms to a young woman who used its platforms.
CFO Susan Li warned that EU and US regulatory headwinds could dent Meta’s business as the company laid off about 10% of its staff—8,000 workers—bringing headcount to 78,000.
CEO Mark Zuckerberg called the quarter a milestone after Meta’s apps served 3.56 billion daily users in March, with ad volume up 19% and prices up 12%.

History

Historical Context

In May 1998 the U.S. Department of Justice and 20 states sued Microsoft, and in 2000 Judge Thomas Penfield Jackson ruled the company had illegally monopolized the PC operating-system market. The case settled in 2001-02 with a consent decree forcing API sharing, a precedent cited as regulators now eye Meta’s platform practices.

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Meta Shares Fall

Meta posted Q1 2026 revenue of $56.31 billion, up 33%, and earnings of $7.31 per share.
It raised its 2026 capex midpoint to $135 billion from $125 billion.
Shares fell about 8% after hours, a 9% one-day drop on April 30, 2026.
JPMorgan analyst Doug Anmuth cut his target to $725 from $825 and downgraded Meta to Neutral.
Goldman Sachs analyst Eric Sheridan lowered the 12-month target to $830 from $840 after the capex raise.

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