Meta Stock: Is It Time for Investors to Buy the Dip?

Meta reported strong Q1 results — revenue rose 33% YoY to $56.3 billion, operating margin held at 41%, and free cash flow increased to $12.4 billion — yet the stock plunged after management raised its 2026 capital-expenditure outlook to $125–$145 billion. The higher AI/data-center capex, nearly double last year’s spend at the midpoint, drove a sell-off that knocked more than 20% off shares from their fall-2025 high and pushed the stock into a lower, more attractive valuation (P/E in the low-20s). Management emphasized flexibility to slow or reduce buildouts if needed, and the author frames the decline as a potential buy-the-dip opportunity for long-term investors despite risks from Reality Labs losses and legal headwinds.