Meta stock reached approximately $590 in early trading as investor sentiment shifts toward the company’s aggressive artificial intelligence infrastructure strategy, marking a recovery from earlier June weakness despite concerns over massive capital expenditure commitments.
The social media giant reported first-quarter 2026 revenue of $56.31 billion, representing 33% year-over-year growth—the fastest top-line expansion since 2021, according to multiple financial outlets. Meta’s earnings per share of $7.31 beat analyst expectations, yet the initial market reaction proved negative as investors focused on the company’s elevated spending plans.
Meta raised its full-year 2026 capital expenditure guidance to between $125 billion and $145 billion, up from its prior forecast of $115 billion to $135 billion, the company announced on April 29. During the first quarter alone, Meta spent nearly $20 billion on artificial intelligence infrastructure, including data centers and semiconductor purchases. The company is positioning itself to develop what Chief Executive Mark Zuckerberg calls “superintelligence” capabilities.
The initial post-earnings selloff reflected Wall Street’s anxiety about whether Meta’s massive AI investments would generate sufficient returns. Meta shares dropped roughly 8% in regular trading following the earnings announcement, with additional pressure mounting after reports in early June that the company was considering raising tens of billions through a stock offering to fund the AI buildout. That prospect triggered a further 5% decline on June 5, according to reports.
Recent momentum suggests investor perspectives are shifting. Analysts have begun reassessing whether Meta’s advertising business—which generated 26% revenue growth in the first quarter—combined with AI-powered recommendation systems across Facebook, Instagram, and Threads, could justify the spending. Seeking Alpha noted on June 12 that Meta’s advertising segment is rebounding faster than expected, with potential to surpass Alphabet in ad revenue by year-end.
The stock’s recovery aligns with broader recognition that Meta’s AI strategy differs fundamentally from pure infrastructure plays. Unlike companies building chips or data centers for third-party use, Meta is deploying AI directly within its advertising platform to improve targeting and user engagement. Morgan Stanley research highlighted that Meta’s AI recommendation systems are delivering higher engagement across its family of apps.
Meta’s capex intensity—roughly 20% of projected 2026 revenue—remains historically elevated, creating ongoing debate among investors about near-term profitability pressures versus long-term competitive positioning. The company’s free cash flow is expected to decline 53% in 2026 to $18.5 billion as a result, according to FactSet data cited in December 2025 analyst reports.
Sources
- Yahoo Finance — Meta stock price history and trading data for June 2026
- Reuters — Meta’s 73% capital spending increase for AI development announced January 29, 2026
- Business Insider — Meta Q1 2026 earnings recap and capex guidance raise to $125-145 billion
- Seeking Alpha — Meta advertising revenue growth analysis and competitive positioning, June 12, 2026
- Investing.com — Meta Q1 2026 revenue of $56.31 billion with 33% year-over-year growth and stock valuation analysis
- Morgan Stanley — AI recommendation systems performance across Meta’s platforms
- CNBC — Meta Q1 2026 earnings report and revenue guidance
- Investor’s Business Daily — Meta free cash flow forecast decline to $18.5 billion in 2026
