Meta Platforms Stock Is Bearish

last updated on

Meta Platforms Stock Is Bearish

Why Meta Platforms Stock Is Bearish?

Meta Platforms (META) had very good results in the last few quarters. But if we look at Meta Platforms' share price, it appears as if nothing good is going on with the company.

The data showed that Meta's revenue has jumped by 26% and reached $51 billion in Q3. On top of that, Meta also enjoyed a higher price per ad and more impressions.

Meta Stock Price Is Down By 16%

But despite all these positive developments, the stock price of Meta is down by 16%. According to experts, the earnings of Meta are very good, but investors are more worried about the company's spending.

It wouldn't be wrong to say that Meta has spent a lot of money on AI this year. As per the reports, the company paid up to $300 million worth of packages to acquire top AI talent in the last 4 years.

Also, Meta has spent a lot of money to build up its AI infrastructure. So, just like the company is making more money, it has also ramped up its spending on AI.

In 2024, the capital expenditure of Meta was around $39 billion, which jumped to $70-$72 billion in 2025. So yes, Meta is literally pouring money into AI, which is worrisome for the markets.

According to Meta, the capital expenditures will actually increase in 2026. In fact, the company is planning to spend $600 billion in the next 3 years for AI technology, workforce expansion, and building infrastructure.

At the same time, we must also keep in mind how Meta failed to capitalize on its spending on the Metaverse during 2021-2022. So, if we see the same picture repeated this time, it would be a major setback for Meta stock.

But if we keep the concerns aside, there's no doubt that Meta is doing well with its ad business. On top of that, Meta also has a very strong balance sheet, which means it can keep spending for years.

So for the next 3-5 years, Meta Platforms is in very good shape to capitalize on the AI boom. But if we see a repeat of the metaverse failure, things could turn worse for the Meta stock.

Trending Stories