Overview
- Shares fell more than 11% after the report as investors fixated on higher AI infrastructure outlays despite revenue and operating income topping estimates.
- Guidance now calls for 2025 capex of $70 billion to $72 billion, and CFO Susan Li said spending will be "notably larger in 2026."
- Management also lifted operating expense guidance and signaled accelerating 2026 opex growth as compute investments increase, according to TD Cowen.
- Oppenheimer downgraded the stock to Perform and removed its price target, while TD Cowen cut its target to $810 and several banks trimmed targets but kept Buy or Overweight ratings.
- Consensus still reflects a Strong Buy with a mean target near $872 and the shares remain up about 14% year to date, as Meta cited a $60 billion run rate for AI-powered ad tools and Arete warned of potential cash and net debt risk by 2027.