Meta Shares Plunge 9% to $611.91 on AI Capex Hike, More Layoffs Loom

Meta shares dropped 9% to $611.91 after Q1 2026 earnings revealed $56.31B revenue (+33.1% YoY) and $10.44 EPS (boosted by $8.03B tax benefit), but management raised 2026 capex to $125-145B from $115-135B while signaling further layoffs for AI infrastructure. The reaction follows March 13's initial 10% workforce cut (~8,000 jobs), metaverse pivot sunsetting Horizon Worlds, aggressive exec stock options, and April 30's blocked $2B China Manus deal. Analysts stay bullish, with mean PT ~$855 implying 40% upside despite execution risks.