Meta selloff puts high-exposure ETFs in focus after CapEx hike

Meta Platforms reported stronger-than-expected Q1 results—revenue rose 33% to $56.3B and EPS was $10.44—yet the stock tumbled about 8.5% in premarket trading after management issued weaker forward guidance and raised its capital expenditure outlook. The combination of softer guidance and a higher capex trajectory spooked investors, prompting a selloff that could disproportionately weigh on ETFs and portfolios with large Meta weightings. Market participants are focused on how the ramp in spending and slower near-term outlook will affect margins and the stock’s contribution to tech-heavy benchmarks and ETFs.