Meta’s stock dropped 6% after hours on April 29, 2026. This decline followed a report revealing disappointing user growth and capital expenditures, overshadowing a revenue beat.
Meta reported first-quarter revenue of $56.3 billion, exceeding analyst estimates of $55.45 billion. However, daily active users fell short of expectations at 3.56 billion, below the projected 3.62 billion.
Capital expenditures for the quarter totaled $19.84 billion, which was significantly below the average estimate of $27.57 billion. This discrepancy raised concerns among investors.
Mark Zuckerberg stated, “I expect that we will invest a significant amount of capital over the coming years to pursue that opportunity.” The company plans to spend hundreds of billions on AI infrastructure in the near future.
Despite these setbacks, Meta raised its full-year capital expenditure guidance to a range of $125 billion to $145 billion. The full-year expense outlook remains between $162 billion and $169 billion.
As of March 31, Meta’s headcount rose by 1% year-on-year to 77,986 employees. This slight increase reflects ongoing efforts to bolster its workforce amid shifting market dynamics.
The results come amid strong momentum in technology stocks; the Nasdaq Composite was up 14% for April through Wednesday’s close. Investor sentiment remains cautious as they assess Meta’s performance against broader market trends.
Analysts will closely monitor how these developments affect Meta’s future growth and investor confidence moving forward.