Meta Platforms’ stock dropped about 6% in after-hours trading on April 29, 2026. This decline followed a mixed earnings report that revealed disappointing user growth and capital expenditures. Meta reported first-quarter revenue of $56.3 billion, exceeding analyst estimates of $55.45 billion.
However, daily active users (DAP) fell short of expectations. The company reported 3.56 billion daily active people, below the projected 3.62 billion. Investors expressed concern over this lackluster user growth.
Capital expenditures for the quarter totaled $19.84 billion, significantly lower than the average estimate of $27.57 billion. This gap raised questions about Meta’s spending strategy as it invests heavily in AI infrastructure.
Despite the disappointing figures, Meta raised its full-year capital expenditure guidance to a range of $125 billion to $145 billion. The company maintained its full-year expense outlook between $162 billion and $169 billion.
Mark Zuckerberg emphasized the company’s commitment to investing in AI infrastructure, stating, “I expect that we will invest a significant amount of capital over the coming years to pursue that opportunity.” This statement reflects Meta’s long-term vision amidst current investor sentiment challenges.
The headcount at Meta rose by 1% year-on-year to 77,986 employees as of March 31. This increase indicates ongoing hiring despite the recent financial pressures.
The report comes amid strong momentum in technology stocks, with the Nasdaq Composite up 14% for the month through Wednesday’s close. Observers suggest that while Meta’s current performance raises concerns, its future investments may stabilize investor confidence.
