Meta Shares Tumble 7% Despite Q1 Earnings Beat on Raised CapEx Guidance

Meta Platforms shares plunged nearly 7% in extended trading to 627.97 despite Q1 beats including adjusted EPS $7.31 (+8.89% surprise) and revenue $56.31B (+33% YoY, +1.47% beat), as investors reacted to 2026 CapEx guidance raised to $125-145B from prior $120-135B. Initial coverage on April 29 highlighted AI ad momentum like 6%+ conversion lifts and four-quarter beat streak, with strong ad impressions (+19%) and pricing (+12%). The selloff reflects margin fears amid unchanged expense outlook and $107B contractual commitments rise, while Q2 revenue guides $58-61B.