Meta stock sinks after Q1 earnings as company raises 2026 AI spending forecast to $125 billion-$145 billion

Meta reported Q1 results that beat Street estimates — EPS $10.44 and revenue $56.3 billion versus Bloomberg-adjusted estimates of $8.15 and $55.5 billion — but shares slid as much as 10% after management raised its 2026 capital expenditure forecast to $125–$145 billion (from $115–$135 billion), citing higher component pricing and added data‑center costs tied to AI buildout. Overall full‑year expenses were reiterated at $162–$169 billion, and revenue guidance for the current quarter was set at $58–$61 billion. The market reaction reflects investor concern that sharply higher AI capex could weigh on future returns despite strong ad metrics (ad impressions +19% and price per ad +12%) and rising daily users. The company also announced a workforce reduction of about 8,000 roles as it reallocates costs toward AI investments.